THE BIHAR VALUE ADDED TAX ACT, 2005 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1. Short title, extent and commencement. 

2. Definitions. 

CHAPTER II 

INCIDENCE OF TAX 

3. Charge of tax. 

4. Levy of purchase tax. 

5. Liability to pay purchase tax on certain purchases. 

6. Non-levy of tax in certain cases. 

7. Exemptions. 

8. Burden of proof. 

CHAPTER III 

TRIBUNAL AND TAXING AUTHORITIES 

9. Tribunal. 

10. Taxing Authorities and Inspectors. 

11. Protection of action taken in good faith. 

12. Power to issue summons and examine on oath. 

CHAPTER IV 

RATE OF TAX AND POINT OF LEVY 

13. Point or points in series of sales at which sales tax shall be levied. 

14. Rate of tax. 

15. Compounding of tax liability in certain cases. 

16. Input tax credit. 

17. Exports to be zero-rated. 

18. Rate of tax on packing materials and containers. 

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CHAPTER V 

REGISTRATION 

SECTIONS 

19. Registration. 

20. Amendment and cancellation of certificate of registration. 

21. Security. 

22. Declared manager. 

23. Furnishing of information by dealers. 

CHAPTER VI 

RETURNS, ASSESSMENT, RE-ASSESSMENT AND PAYMENT OF TAX 

24. Returns, payment of tax, interest and penalty. 

25. Scrutiny of returns. 

26. Self-Assessment of tax. 

27. Assessment of dealer not filing returns. 

28. Assessment of tax of dealers evading registration. 

29. Assessment of tax on disputed question. 

30. Assessment of tax of non-resident dealer doing business temporarily by way of fair, mela, etc. 

31. Assessment or re-assessment of tax of escaped turnover. 

32. Escaped turnover detected before or at the time of assessment of tax. 

33. Assessment of tax based on audit objections. 

34. Assessment of tax proceedings, etc., not to be invalid on certain grounds. 

35. Taxable turnover. 

36. Tax payable by a dealer. 

37. Time limit for completion of proceeding of assessment of tax. 

38. Exclusion of time in assessment tax proceedings. 

39. Payment and recovery of tax. 

40. Advance recovery of tax on sales and supplies to Governments and other persons. 

41. Advance recovery of tax from works contractors. 

42. Production of tax clearance certificate. 

43. Restriction on collection of tax by dealers. 

44. Forfeiture of tax collected in violation of this Act. 

45. Rounding off of tax liability. 

46. Recovery of tax as arrears of land revenue. 

47. Special mode of recovery of tax and other liabilities under this Act. 

48. Liability of surety. 

49. Transfers to defraud revenue void. 

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SECTIONS 

50. Period of limitation for recovery of tax. 

51. Tax to be first charge on property. 

CHAPTER VII 

BOOKS OF ACCOUNT AND FURNISHING OF INFORMATION 

52. Maintenance of accounts. 

53. Issue of tax invoice and debit and credit notes. 

54. Accounts to be audited in certain cases. 

55. Furnishing of information by Government departments, banks, financial institutions clearing and 

forwarding agents and owners of warehouses, godowns and others. 

CHAPTER VIII 

INSPECTIONS, SEARCH AND SEIZURE  

56. Production of books of account, inspection, search and seizure. 

57. Cross checking or verification of transactions. 

58. Survey. 

59. Control on clearing, forwarding or booking agent and any person transporting goods. 

CHAPTER IX 

CHECK-POSTS AND RESTRICTIONS ON MOVEMENT 

60. Establishment of check-posts. 

61. Restriction on movement of goods. 

62. Transportation of goods through State of Bihar. 

CHAPTER X 

LIABILITIES OF REPRESENTATIVE CHARACTER 

63. Liability to pay tax in case of transfer of business. 

64. Tax payable by deceased dealer shall be paid by his representative. 

65. Tax-liability of guardian and trustee, etc. 

66. Tax-liability of court of wards. 

67. Liability in case of dissolution of firm, etc. 

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CHAPTER XI 

REFUNDS AND ADJUSTMENTS 

SECTIONS 

68. Refunds. 

69. Provisional refunds. 

70. Interest on delayed refund. 

71. Power to withhold refund in certain cases. 

CHAPTER XII 

APPEAL, REVISION AND REVIEW 

72. Appeal to Deputy Commissioner and Joint Commissioner. 

73. Appeal to Tribunal. 

74. Revisionary powers of Commissioner. 

75. Additional evidence in appeal or revision. 

76. Review. 

77. Determination of disputed questions. 

78. Power to transfer proceedings. 

79. Appeal before High Court. 

80. Case before High Court to be heard by not less than two Judges. 

CHAPTER XIII 

OFFENCES AND PENALTIES 

81. Offences and penalties. 

82. Cognizance of offences. 

83. Investigation of offences. 

84. Offences by companies and others. 

85. Compounding of offences. 

CHAPTER XIV 

BUREAU OF INVESTIGATION 

86. Bureau of Investigation. 

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CHAPTER XV 

MISCELLANEOUS 

SECTIONS 

87. Appearance before taxing authorities. 

88. Change of an incumbent of an office. 

89. Bar to certain proceedings. 

90. Disclosure of information by public servant. 

91. Agreements to defeat intention and application of this Act to be void. 

92. Write off of dues. 

93. Power to make rules. 

94. Repeal and savings. 

95. Declaration of stock of goods held on 1st April, 2005. 

96. Transitory provisions. 

97. Construction of references in any repealed law to officers, authorities, etc. 

98. Removal of difficulty. 

99. Laying of notifications on the table of the State Legislature. 

100. Validation of Bihar Value Added Tax Ordinance, 2005. 

SCHEDULE I. 

SCHEDULE II. 

SCHEDULE III. 

SCHEDULE IV. 

SCHEDULE V. 

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THE BIHAR VALUE ADDED TAX ACT, 2005 

ACT NO. 27 OF 2005 

An Act to consolidate and amend the law relating to levy of tax on sales or purchases of goods in the 

State of Bihar and to provide for matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Fifty-sixth Year of the Republic of India as follows:– 

[23rd June, 2005.] 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.–(1) This Act may be called the Bihar Value Added Tax 

Act, 2005. 

(2) It shall extend to the whole of the State of Bihar. 

(3) It shall be deemed to have come into force on the 1st day of April, 2005. 

2. Definitions.–In this Act, unless the context otherwise requires,– 

(a) “Assessing Authority” means any of the authorities referred to in section 10 who is directed 
under  sub-section  (2)  of  that  section  to  exercise  or  perform  all  or  any  of  the  powers  and  functions 
conferred on an Assessing Authority under this Act; 

(b)  “Assistant  Commercial  Taxes  Officer”  means  an  Assistant  Commercial  Taxes  Officer 

appointed under sub-section (1) of section 10; 

(c)  “Assistant  Commissioner  of  Commercial  Taxes”  means  an  Assistant  Commissioner  of 
Commercial  Taxes  and  Additional  Assistant  Commissioner  of  Commercial  Taxes  appointed  under          
sub-section (1) of section 10; 

(d) “business” includes,– 

(i)  any  trade,  commerce,  manufacture  or  any  adventure  or  concern  in  the  nature  of  trade, 
commerce, manufacture, whether or not such trade, commerce, manufacture, adventure or concern 
is carried on with a motive to make gain or profit and whether or not any gain or profit accrues 
from such trade, commerce, manufacture, adventure or concern; 

(ii) any transaction of sale or purchase in connection with, or incidental or ancillary to, such 

trade, commerce, manufacture, adventure or concern; and 

(iii) any transaction in connection with, or incidental or ancillary to, the commencement or 

closure of such business; 

(e) “capital goods” means plant, machinery and equipment used in trade or manufacturing of goods; 

(f)  “casual  trader”  means  a  person,  who,  whether  as  principal,  agent  or  in  any  other  capacity 
undertakes  occasional  transactions  in  the  nature  of  business  involving  buying,  selling,  supply  or 
distribution of goods or conducting any exhibition-cum-sale in the State of Bihar, whether for cash, 
deferred payment, commission, remuneration or other valuable consideration; 

(g)  “Commercial  Taxes  Officer”  means  a  Commercial  Taxes  Officer  appointed  under                      

sub-section (1) of section 10; 

(h)  “Commissioner”  means 

the  Commissioner  of  Commercial  Taxes  appointed  under                        

sub-section (1) of section 10 or Additional Commissioner of Commercial Taxes and any other officer 
upon whom the State Government may, by notification, confer all or any of the powers and duties of 
the Commissioner under this Act; 

(i) “dealer” means any person who, whether regularly or otherwise, in the course of business, buys,  

sells,  supplies,  distributes or does anything incidental to such buying,  selling,  supplying or  

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distributing  of  goods,  directly  or  indirectly,  whether  for  cash,  or  for  deferred  payment  or  for 
commission, remuneration or other valuable consideration and includes– 

(A) a local authority; 

(B) a Hindu undivided family; 

(C)  a  company,  or  any  society  (including  a  co-operative  society), club,  firm,  association  of 

persons or body of individuals, whether incorporated or not, which carries on such business; 

(D) a society (including a co-operative society), club, firm or association which buys goods 

from, or sells, supplies or distributes goods to its members; 

(E) an industrial, commercial, banking or trading undertaking, whether or not, of the Central 

Government or of any of the State Governments or of a local authority; 

(F) a casual trader; 

(G)  a  commission  agent,  broker,  factor,  a  del  credere  agent,  an  auctioneer  or  any  other 
mercantile  agent,  by  whatever  name  called,  who  carries  on  the  business  of  buying,  selling, 
supplying or distributing goods on behalf of the principal. 

Explanation.–Every person who acts as an agent on behalf of a dealer residing outside the State 
of Bihar and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer 
as– 

(a)  a  commission  agent,  broker,  factor,  a  del  credere  agent,  an  auctioneer  or  any  other 

mercantile agent, by whatever name called; or 

(b) an agent for handling goods or documents of title to goods; or 

(c) an agent for the collection or the payment of the sale price of goods or as a guarantor 

for such collection or payment; or 

(d) a local branch of a firm or company situated outside the State, shall be deemed to be a 

dealer for the purposes of this Act; 

(j) “declared goods” means goods declared under section 14 of the Central Sales Tax Act, 1956 (74 

of 1956) to be of special importance in inter-State trade or commerce; 

(k)  “Deputy  Commissioner  of  Commercial  Taxes”  means  the  Deputy  Commissioner  of 
Commercial  Taxes  or  Additional  Deputy  Commissioner  of  Commercial  Taxes  appointed  under  
sub-section (1) of section 10; 

(l)  “goods”  means  all  kinds  of  movable  property  including  livestock,  computer  software,  any 
electronic  chip  used  for  the  purpose  of  storing  or  transmitting  data  or  voice  and  all  materials, 
commodities  and  articles  (as  such  or  in  some  other  form)  but  excluding  newspapers,  electricity, 
actionable claims, stocks, shares or security. 

Explanation.–For the purposes of this clause, materials, commodities and articles,– 

(i) attached to or forming part of an immovable property which are agreed to be severed under 

the contract of sale; or 

(ii) sold or supplied as such or in some other form in the execution of works contract, lease or 

hire purchase, shall be deemed to be goods within the meaning of this clause; 

(m) “goods carrier” means a motor vehicle, vessel, boat, animal and any form of conveyance used 

for carrying goods; 

(n) “Government” means the Government of the State of Bihar; 

(o) “gross turnover” means,– 

(i) for the purposes of levy of tax on sales, in respect of sale of goods, aggregate of sale prices 
received or receivable by a dealer on sales and includes sale of goods made outside the State of 
Bihar or in the course of inter-State trade or commerce or export but does not include sale price of 
goods which have borne the incidence of tax on purchases under sections 4 and 5; 

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(ii) for the purposes of levy of tax on purchase, aggregate of purchase prices paid or payable 
by a dealer during any given period in respect of purchase of goods or class or description of goods 
which are liable to tax under sections 4 and 5; and 

(iii) for the purposes of section 3, the aggregate of the amounts under sub-clauses (i) and (ii) 

above. 

Explanation.–For  the  purposes  of  this  clause,  the  amount  received  by  a  dealer  on  account  of  price 
variation or price escalation in respect of sale or supply of goods shall be deemed to form part of gross 
turnover of the financial year during which it is actually received; 

(p) “importer” means a dealer who brings any goods into the State of Bihar or to whom any goods 

are despatched from any place outside the State of Bihar; 

(q) “input” means goods (excluding goods specified in Schedule IV) purchased in the course of 

business– 

(a) for re-sale; 

(b) for use in manufacture of goods including packing materials; 

(c) for use as capital goods as defined in clause (e); 

(r) “input tax” means the amount paid or payable by a registered dealer, by way of tax under this 

Act, in respect of purchase of any taxable goods; 

(s)  “Inspector”  means  an  Inspector  of  Commercial  Taxes  appointed  under  sub-section  (3)  of       

section 10; 

(t) “month” means a calendar month; 

(u) “notification” means a notification published in the Official Gazette; 

(v) “output tax” means the tax charged or chargeable in respect of sale or supply of goods made by 

a registered dealer; 

(w)  “place  of  business”  means  any  place  where  a  dealer,  either  usually  or  for  the  time  being, 
manufactures, sells or purchases goods or keeps accounts of stocks, manufactures, sales or purchases, 
execution  of  works  contracts,  hire  purchase  contracts  and  lease  contracts  or  any  other  place  where 
business activity takes place and includes– 

(i) the place of business of an agent, in case of a dealer carrying on business through an agent; 

or 

(ii) any place or building in which a person carrying on a business, keeps any of his books of 

account, documents, stocks or other things, relating to his business; 

(x)  “prescribed  authority”  means  the  authority  prescribed  by  the  rules  made  under  this  Act  to 
exercise powers conferred under different provisions and perform such functions as may be conferred 
by or under this Act; 

(y) “prescribed” means prescribed under the rules made under this Act; 

(z) “purchase price” means the amount paid or payable by a dealer as a valuable consideration in 

respect of purchase of goods and includes– 

(i) any amount charged for anything done by the vendor in respect of the goods at the time of, 

or before, the delivery thereof; 

(ii) transport costs or freight, if any; 

(iii) trade commission, if any, by whatever name called; 

(iv) clearing, forwarding and handling charges, if any; 

(v) insurance charges, if any; 

(vi) taxes or duties under any law for the time being in force (other than tax paid or payable 

under this Act) by whatever name called, if any; 

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(vii) cost of packing, if any; and 

(viii) the amount paid or payable by the purchaser by way of non-refundable deposit, whether 
by way of a separate agreement or not, in connection with or incidental or ancillary to, the said 
purchase of goods; 

(za) “quarter” means the quarter ending on the 30th June, 30th September, 31st December and 31st 

March and the expression “quarterly” shall be construed accordingly; 

(zb) “registered dealer” means a dealer in possession of a valid certificate of registration granted to 
him under section 19 or under the provisions of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as 
it stood before its repeal by section 94; 

(zc)  “sale”  with  all  its  grammatical  variations  and  cognate  expressions  means  any  transfer  of 

property in goods for cash or deferred payment or for other valuable consideration and includes– 

(i)  a transfer, otherwise than  in pursuance  of  a contract, of  property  in  any  goods  for  cash, 

deferred payment or other valuable consideration; 

(ii) a transfer of property in goods (whether as goods or in some other form) involved in the 

execution of a works contract; 

(iii) a delivery of goods on hire purchase or any system of payment by instalments; 

(iv) a transfer of the right to use any goods for any purpose (whether or not for a specified 

period) for cash, deferred payment or other valuable consideration; 

(v) a supply of goods by any unincorporated association or body of persons to a member thereof 

for cash, deferred payment or other valuable consideration; 

(vi) a supply, by way of or as part of any service or in any other manner whatsoever, of goods, 
being food or any other article for human consumption or any drink (whether or not intoxicating) 
where such supply or service is for cash, deferred payment or other valuable consideration, 

and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person 
making the transfer, delivery or supply and purchase of those goods by the person to whom such transfer, 
delivery or supply is made; 

(zd) “sale price” means the amount payable to a dealer as valuable consideration for the sale or 

supply of any goods and includes– 

(i) any amount charged for anything done by the vendor in respect of the goods at the time of, 

or before, the delivery thereof; 

(ii) transport costs or freight, if any; 

(iii) trade commission, if any, by whatever name called; 

(iv) clearing, forwarding and handling charges, if any; 

(v) insurance charges, if any; 

(vi) taxes or duties levied under any law for the time being in force (other than tax paid or 

payable under this Act) by whatever name called, if any; 

(vii) cost of packing, if any; and 

(viii) the amount received or receivable by the seller by way of non-refundable deposit, whether 
by way of a separate agreement or not, in connection with or incidental to or ancillary to, the said 
sale of goods; 

Explanation I.–Where goods are sold on hire purchase or any system of payment by instalments, 
the sale price of such goods shall be inclusive of insurance charges, interest and hire charges and such 
other charges related to hire purchase or any system of payment by instalments. 

Explanation II.–Where goods are sold by way of transfer of right to use such goods, the sale price 
thereof shall be the amount of valuable consideration received or receivable by the transferor for such 
transfer; 

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(ze) “tax” means the tax leviable and payable under this Act; 

(zf) “taxable goods” means all goods in respect of which tax is payable under section 14; 

(zg) “Tribunal” means the Tribunal constituted under sub-section (1) of section 9; 

(zh) “works contract” means any agreement for carrying out for cash or deferred payment or other 
valuable consideration, the construction, fitting out, improvement or repair of any building, road, bridge 
or other immovable or movable property; 

(zi) “year” means the financial year. 

CHAPTER II 

INCIDENCE OF TAX 

3. Charge of tax.–(1) Every dealer who is registered under the Bihar Finance Act, 1981 (Bihar Act 5 
of 1981), as it stood before its repeal by section 94, shall be liable, on or after the commencement of this 
Act, to pay tax under this Act on sale or purchase, made by him. 

(2) Every dealer, to whom sub-section (1) does not apply, shall be liable to pay tax on sale or purchase, 
as the case may be, from the date on which his gross turnover, during a period not exceeding twelve months, 
first exceeded five lakh rupees. 

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2) but subject to the other 

provisions of this Act, every dealer,– 

(a) being an importer or a manufacturer; or 

(b) who is required to file a return under the Income-tax Act, 1961 (43 of 1961); or 

(c) who holds any licence under the Explosives Act, 1884 (4 of 1884), or the Bihar Excise Act, 
1915 (Bihar and Orissa Act 2 of 1915), or the Drugs and Cosmetics Act, 1940 (23 of 1940), or the 
Essential  Commodities  Act,  1955  (10  of  1955)  or  the  Mines  and  Minerals  (Development  and 
Regulation) Act, 1957 (67 of 1957); or 

(d)  being  a  corporation,  constituted  under  any  law  for  the  time  being  in  force  or  a  company 
incorporated under the Companies Act, 1956 (1 of 1956), or, is registered under the Central Sales Tax 
Act, 1956 (74 of 1956); or 

(e)  whose  place  of  business  is  located  inside  the  market  yard  established  under  the  Bihar 

Agriculture Produce Market Act, 1960 (Bihar Act 16 of 1960); or 

(f) who fulfils the following two conditions, namely:– 

(i) uses a telephone in his place of business or has a mobile telephone; and 

(ii) the receipts or payments of whose business, either wholly or in part, are transacted through 

any bank,  

shall be liable to pay tax on sale or purchase, as the case may be, with effect from the date of the first sale 
of any taxable goods made by him. 

(4) Every dealer who has become liable to pay tax under sub-sections (1), (2) and (3) shall, subject to 
the provisions of sub-section (5), cease to be so liable after the expiry of twelve consecutive months from 
the date he either closes or discontinues his business or entirely transfers his business to another person. 

(5) A registered dealer shall, within a period of twelve consecutive months, pay tax on the stock of 

goods remaining with him on the date with effect from which he closes or discontinues his business: 

Provided  that  the  Commissioner  may,  after  recording  the  reasons,  extend  the  period  of  twelve 
consecutive  months if the goods  are  held in stock  beyond  the said  period  of twelve  months  because  of 
reasons beyond the control of the dealer. 

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(6) Notwithstanding anything contained in sub-section (1) or sub-section (2) or sub-section (3), where 
any person who, is, or was, less than six months earlier, a member of the partnership firm, concern or Hindu 
undivided family, which is, or was, less than six months earlier, liable to pay tax, starts a new business, 
either  singly  or  jointly  with  other  persons,  or  joins  other  business,  partnership  firm  or  concern,  tax  as 
aforesaid, shall likewise be payable on sales and purchases made from such business, partnership firm or 
concern, on and from the date the person starts or joins it, unless the liability in respect of such business, 
partnership firm or concern has arisen from an earlier date under the said sub-sections. 

(7) The tax for each year or any part thereof, may, with the previous approval of the Commissioner, be 
estimated and collected in advance, in the manner prescribed, during a year, in such instalments as may be 
fixed by the prescribed authority. 

(8) For the purposes of sub-section (7), the prescribed authority may require the dealer to furnish an 
advance estimate of his taxable turnover for that year or any part thereof and may provisionally determine 
the amount of tax payable by the dealer in respect of the year or any part thereof and thereupon the dealer 
shall pay the amount so determined by such date as may be fixed by such authority. 

4. Levy of purchase tax.–Subject to the provisions of sections 6 and 7, every dealer liable to pay tax 
under section 3, who purchases goods in circumstances in which no tax on sales is payable or has been paid 
on the sale price of such goods and either consumes such goods in the manufacture of other goods for sale 
or otherwise disposes of such goods in any manner other than by way of sale in the State or sale in the 
course of inter-State trade or commerce, shall be liable to pay tax on the purchase price of such goods at 
the same rate at which it would have been leviable on the sale price of such goods under section 14. 

5. Liability to pay purchase tax on certain purchases.–Where a dealer purchases any taxable goods 
from any person within the State of Bihar, and such person is not a registered dealer and the said goods are 
used as capital assets anytime after such purchase, there shall be levied, a tax on the purchase price of such 
purchases at the rate at which tax on sales is leviable on the said goods. 

6. Non-levy of tax in certain cases.–(1) No tax shall be payable under this Act on sales or purchases 

of goods which have taken place– 

(a) in the course of inter-State trade or commerce; 

(b) outside the State of Bihar; 

(c) in the course of import of goods into, or, export of goods out of, the territory of India. 

(2) The provisions of the Central Sales Tax Act, 1956 (74 of 1956) shall apply for determining when a 
sale or purchase of goods shall be deemed to have taken place in any of the ways mentioned in clause (a) 
or clause (b) or clause (c) of sub-section (1). 

7. Exemptions.–No tax shall be payable on sale or purchase of goods specified in Schedule I. 

8. Burden of proof.–The burden of proving that any sale or purchase effected by a dealer is not liable 
to tax under section 6 or section 7 or sub-section (2) of section 13, as the case may be, or that he is eligible 
for an input tax credit under sections 16 and 17 shall be on the dealer. 

CHAPTER III 

TRIBUNAL AND TAXING AUTHORITIES 

9.  Tribunal.–(1)  Subject  to  such  rules,  as  may  be  prescribed,  the  State  Government  shall,  by  a 
notification  published  in  the  Official  Gazette,  constitute  a  Tribunal  to  be  called  the  Commercial  Tax 
Tribunal consisting of a Chairperson and two other Members to exercise all the powers and perform all the 
functions conferred by or under this Act or any other law for the time being in force upon such a Tribunal: 

Provided that till the Tribunal is constituted under this Act, the Tribunal constituted under the Bihar 
Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, shall be deemed to be 
the Commercial Tax Tribunal constituted under this Act and shall exercise all the powers and perform all 
the functions conferred by or under this Act or any other law for the time being in force. 

(2) The Chairperson of the Tribunal shall be a retired High Court Judge, not exceeding sixty-five years 

of age, or a judicial officer of the rank of a District Judge. 

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(3) One of the other two Members shall be an officer of the Commercial Taxes Department of the State 

Government not below the rank of Joint Commissioner and the third Member shall be a person 

(a) who has, for at least ten years, been in the practice of accountancy as a chartered accountant 
under the Chartered Accountants Act, 1949 (38 of 1949) or as a registered accountant under any law 
formerly in force or partly as a registered accountant and partly as a chartered accountant; or 

(b) who is or has been an officer of the Indian Audit and Accounts Service not below the rank of 

Deputy Accountant-General; or 

(c) who is a Government servant, whether serving or retired having experience of at least four years 
in the administration of accounts or financial management in the State Government or public sector 
undertaking. 

(4)(a) The State Government may, if it considers expedient to do so, set up by a notification, one or 
more additional benches of the Tribunal at such places and having jurisdiction over such area as may be 
specified in the notification. 

(b) It shall consist of such Member or Members, as may be specified in the notification, possessing 

such qualifications as are specified in sub-sections (2) and (3): 

Provided that if a judicial officer is appointed to such an additional bench, he shall be an officer not 

below the rank of an Additional District Judge. 

(5) Any vacancy in the membership of the Tribunal shall be filled up by the State Government as soon 

as possible. 

(6)  During  the  vacancy  in  the  post  of  the  Chairperson  pending  the  appointment  of  a  permanent 

Chairperson, the Government may appoint one of the remaining members to act as the Chairperson. 

(7) Any person appointed as a member of the Tribunal shall ordinarily hold office for a period of three 

years: 

Provided  that  in  case  a  retired  High  Court  Judge  is  appointed  as  the  Chairperson  or  any  other 
Government  servant  is  appointed  as  a  Member,  after his  superannuation  to  the Tribunal, the  terms  and 
conditions of service (including his pay and allowances) shall be such as may be prescribed. 

(8)(a) The functions of the Tribunal shall be exercised by a bench to be constituted by the Chairperson 

consisting of one or two or three members. 

(b) The nature of cases to be disposed of by either of these benches shall be under the discretion of the 

Chairperson: 

Provided that a bench consisting of only one Member or two Members may in its discretion refer a case 

to a larger bench of two or three Members, as the case may be. 

(9)(a) Where an application is heard by all the three Members of the Tribunal and the Members are 
divided in opinion on any point or points, such point or points shall be decided in accordance with  the 
opinion of the majority: 

Provided that if the post of any one of the Members is vacant such points shall be decided in accordance 

with the opinion of the Chairperson. 

(b) Where an application is heard by a bench consisting of two Members, whether it consists of the 
Chairperson or not, and the Members are  divided in opinion on any point or points, such point or points 
shall be referred to a bench consisting of all the three Members. 

(10)(a) The  Members  of the Tribunal  shall  be  deemed  to  be  public  servants  within  the  meaning  of 

section 21 of the Indian Penal Code (45 of 1860). 

(b) No Member shall accept any other paid employment outside the duties of his office during the term 

of his membership of the Tribunal. 

(11)  The  Tribunal  shall,  with  the  previous  sanction  of  the  State  Government,  make  regulations 
consistent with the provisions of this Act and the rules made thereunder, for regulating its procedure and 
other matters incidental to the disposal of its business and publish such regulations in the Official Gazette. 

12 

 
(12) The Members of the Tribunal shall, ordinarily be appointed for a period of three years from the 

date of their appointment: 

Provided that the period of appointment may be reduced or extended by the State Government. 

(13) The Chairperson or any other Member may, by notice in writing  under his hand addressed to the 

State Government, resign his office: 

Provided  that  the  Chairperson  or  any  other  Member  shall,  unless  he  is  permitted  by  the  State 
Government to relinquish his office sooner, continue to hold office until the expiry of three months from 
the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or 
until the expiry of his term of office, whichever is the earliest. 

(14) The Chairperson or any other Member of the Tribunal shall not be removed from his office except 
by an order by the State Government on the ground of proved misbehaviour or incapacity after an inquiry 
made by a Judge of the High Court, in which the Chairperson or any other member concerned has been 
informed of the charges against him and given a reasonable opportunity of being heard in respect of those 
charges. 

(15) The State Government may, by rules, regulate the procedure for the investigation of misbehaviour 

or incapacity of the Chairperson or any other Member. 

10. Taxing Authorities and Inspectors.–(1) There shall be the following classes of authorities to be 

appointed by the State Government, for carrying out the purposes of this Act, namely:– 

(a) Commissioner of Commercial Taxes; 

(b) Senior Joint Commissioner of Commercial Taxes; 

(c) Joint Commissioner of Commercial Taxes; 

(d) Deputy Commissioner of Commercial Taxes; 

(e) Assistant Commissioner of Commercial Taxes; 

(f) Commercial Taxes Officer; 

(g) Assistant Commercial Taxes Officer. 

(2)  The  authorities  appointed  under  sub-section  (1)  shall,  within  such  areas  or  in  respect  of  such 
transactions  falling  within  an  area  as  the  State  Government  may,  by  notification  specify,  exercise  such 
powers as may be conferred and perform such duties as may be imposed, by or under this Act. 

(3)  The  Commissioner  may  appoint  such  number  of  Inspectors  of  Commercial  Taxes  as  may  be 
necessary to assist any of the authorities appointed under sub-section (1) and the Inspectors so appointed 
shall, within such areas exercise powers under sub-sections (1) and (2) of section 56 and perform such other 
functions in the execution of this Act in those areas as may be prescribed or as the Commissioner may, by 
general  or  special  order,  assign  to  them  and  such  assignment  may  be  subject  to  such  conditions  and 
restrictions as may be specified in the order. 

(4) All persons appointed under sub-section (1) or sub-section (3) shall be deemed to be public servants 

within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860). 

(5) The Commissioner may, at any stage, direct transfer of a proceeding under section 27 or section 28 
or section 31 or section 32 or section 33 or section 72 in respect of any dealer from the prescribed authority 
to another of the same or higher rank appointed under sub-section (1) and where such direction is given by 
the Commissioner the authority to whom the proceeding is transferred shall proceed to dispose it of as if it 
had been initiated by the said authority, irrespective of the local limits of its jurisdiction; such transfer shall 
not render necessary the re-issue of any notice already issued before the transfer and the authority to whom 
the proceeding is transferred may, in its discretion, continue it from the stage at which it was left by the 
authority from whom it was transferred. 

(6) For smooth functioning of the office, it shall be lawful for the Deputy Commissioner or the Assistant 
Commissioner in-charge of a circle to allot work and proceedings amongst the officers posted in the circle, 
as the case may be, and it may include transfer of a proceeding from one officer to another posted in the 
same office and exercising concurrent jurisdiction. 

13 

 
(7) The Commissioner may, from time to time, issue such orders, instructions and directions as he may 
deem fit, to the authorities subordinate to him, for carrying out the purposes of this Act, and such authorities 
shall observe and follow such orders, instructions and directions of the Commissioner: 

Provided that no such orders, instructions and directions shall be issued– 

(i) so as to require any authority to pass a particular order or to dispose of a particular case in a 

particular manner; or 

(ii) so as to interfere with the discretion of the Appellate authorities in a particular case: 

Provided further that if the Commissioner is of the opinion that it is necessary in the public interest 
so to do, he may cause such orders, instructions and directions to be published and circulated for general 
information. 

11. Protection of action taken in good faith.–No suit, prosecution or other legal proceeding shall lie 
against any servant of the Government or any officer or authority appointed under section 10 or section 86 
of this Act for anything which is in good faith done or intended to be done in pursuance or rules made 
thereunder. 

12. Power to issue summons and examine on oath.–(1) The Tribunal constituted under section 9, or 
the Commissioner or any officer or authority appointed under section 10 or section 86 shall, for carrying 
out the purposes of this Act, have all the powers of a Civil Court under the Code of Civil Procedure, 1908 
(5 of 1908) and in particular in respect of the following matters, namely:– 

(a) to summon and enforce attendance of any person, including any officer of a banking company, 

and examine him on oath or affirmation; 

(b) to compel the production of documents or accounts and to impound and retain them; 

(c) to issue commissions for the examination of witness. 

(2) Every proceeding under this Act before the Tribunal, shall be deemed to be a judicial proceeding 

within the meaning of section 193 and section 228 of the Indian Penal Code, 1860 (45 of 1860). 

CHAPTER IV 

RATE OF TAX AND POINT OF LEVY 

13.  Point  or  points  in  series  of  sales  at  which  sales  tax  shall  be  levied.–(1)(a)  Subject  to  the 
provisions of sections 16 and 17, tax on sale of goods (other than goods specified in Schedule IV) shall be 
levied at each point in a series of sales in the State of Bihar by a dealer liable to pay tax under this Act. 

(b) Where the tax is levied at each point of sale, the tax payable by a dealer at any point shall be the 
amount arrived at after deducting, the input tax credit specified under section 16 or section 17, from the tax 
computed at that point of sale.  

(2)(a) The tax on sales, in respect of goods specified in Schedule IV, shall be levied at the first point of 
their sale in the State of Bihar by a dealer and subsequent sales of the same goods in the State of Bihar shall 
not be levied to tax, if the dealer making the subsequent sale produces before the prescribed authority the 
original copy of the cash memo, or invoice or bill issued to him and files a true and complete declaration 
in the form and in the manner prescribed. 

(b) The declaration referred to in clause (a) shall be issued by the selling dealer to the purchasing dealer 

not later than the 30th day of September of the year following the year to which such sales relate. 

(3)  If  upon  information,  the  prescribed  authority  has  reasons  to  believe  that  the  selling  dealer  has, 
without reasonable cause, failed to issue to the purchasing dealer the declaration referred to in sub-section 
(2), he shall, after giving the selling dealer a reasonable opportunity of being heard, direct that the selling  
dealer shall pay, by way of penalty, a sum of rupees five thousand per month for every month of default or 
the amount of tax involved, whichever is less. 

14. Rate of tax.–(1) Tax shall be payable on the sale price of – 

(a) the goods specified in the Schedule II, at the rate of one per cent.; 

(b) the goods specified in the Schedule III, at the rate of four per cent.; 

14 

 
(c) the goods specified in the Schedule IV, at the rate not exceeding fifty per cent. but not less than 
twenty  per  cent.,  as  the  State  Government  may,  subject  to  such  conditions  and  restrictions,  by 
notification, specify; 

(d) any other goods, not specified in the Schedules I, II, III and IV, at the rate of twelve and a-half 

per cent. 

(2) The State Government may, by notification, alter any Schedule to this Act. 

15.  Compounding  of  tax  liability  in  certain  cases.–(1)  Notwithstanding  anything  to  the  contrary 
contained  in  the  Act,  the  State  Government  may,  by  notification  and  subject  to  such  conditions  and 
restrictions as may be prescribed, permit any class of registered dealers, whose gross turnover does not 
exceed the limit specified in the notification to pay, in lieu of the tax payable by him, an amount calculated 
at such rate, not exceeding four per cent. of his taxable turnover, as may be specified in the notification: 

Provided that no such permission shall be granted to a manufacturer or a person who imports any goods 

from any place outside the State of Bihar for the purpose of his business: 

Provided further that the amount so specified shall be in addition to any tax that may be payable by the 

dealer under section 4. 

(2) The dealers to whom the provisions of sub-section (1) apply shall– 

(a) not charge any tax on the sale of goods specified in Schedule I; 

(b) not charge tax in excess of the rate specified in the notification issued under sub-section (1); 

and 

(c) not be entitled to issue tax invoices in respect of sales made by them. 

(3) If the Assessing Authority has reasons to believe that the dealer was not eligible to pay tax at a rate 
specified under sub-section (1), the Assessing Authority shall, without prejudice to any action which is or 
may be taken under section 81, impose a penalty equivalent to three times of the amount of tax arrived at 
after applying the rate, specified under section 14, to the gross turnover of the dealer after deducting the 
value of sales under section 6: 

Provided that no order under this sub-section shall be passed without giving the dealer a reasonable 

opportunity of being heard.  

16. Input tax credit.–(1) Subject to the provisions of this Act, an input tax credit as provided in this 
section  shall  be  claimed  by  a  registered  dealer,  subject  to  such  conditions  and  restrictions  as  may  be 
prescribed, on sales of goods in the following circumstances, namely:– 

(a) when a registered dealer purchases any input within the State of Bihar from another registered 
dealer after paying him the tax as specified under section 14, he shall claim credit of the input tax in 
the manner prescribed, if the goods are sold within the State or in the course of inter-State trade and 
commerce; 

(b) when a registered dealer– 

(i) purchases any input within the State from another registered dealer after paying him the tax 

under section 14, or 

(ii) purchases any input and pays tax on such purchase under section 4 of the Act,  

and  consumes  such  goods in  the  manufacture  of any  goods  mentioned in  clause  (a), (b) and (d)  of 
section  14,  he  shall  claim  credit  of  the  said  input  tax  in  the  manner  prescribed,  if  the  goods  so 
manufactured are sold within the State of Bihar or in the course of inter-State trade and commerce; 

(c) when a registered dealer purchases any capital goods within the State from another registered 
dealer after paying him the tax as specified under section 14, and uses such goods in the manufacture 
of any goods mentioned in clauses (a), (b) and (d) of section 14 and sells the manufactured goods within 
the State of Bihar or in the course of inter-State trade or commerce, or otherwise, he shall claim and be 
allowed, in such manner as may be prescribed, credit of the amount of input tax; 

15 

 
(d) when a registered dealer holds in stock, on the 1st day of April, 2005, such goods as have been 
purchased by him on or after the 1st day of April, 2004 and which have suffered the incidence of tax 
under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94 
and– 

(i)  he  sells  such  goods  within  the  State  of  Bihar  or  in  the  course  of  inter-State  trade  and 

commerce, or 

(ii) he consumes such goods in the manufacture of any goods mentioned in clauses (a), (b) and 
(d) of section 14 and the goods so manufactured are sold within the State of Bihar or in the course 
of inter-State trade and commerce, 

he shall claim credit of the input tax in the manner prescribed; 

(e) when a registered dealer purchases any input within the State of Bihar from another such dealer 
after paying him the tax as specified under section 14 at a rate higher than four per cent. and transfers 
such goods or goods manufactured from such goods to another dealer outside the State of Bihar, he 
shall be allowed credit of such tax in excess of four per cent. in the manner as may be prescribed: 

Provided that if the claim for input tax credit under clause (a) or clause (b) or clause (c) or clause 
(d) or clause (e) for any month exceeds the output tax for the same month, such excess shall be carried 
forward for adjustment against the output tax of subsequent months, not being a month later than two 
years  after  the  close  of  the  year  during  which  such  excess  had  arisen  and  the  amount  of  input  tax 
remaining unadjusted after two years after the close of the year during which such excess had arisen 
shall be refunded to the dealer subject to the provisions of sections 68, 69 and 71 of this Act: 

Provided further that input tax credit in respect of capital goods shall be allowed in the manner and 
over  such  period,  not  exceeding  thirty-six  months  from  the  date  of  their  acquisition,  as  may  be 
prescribed: 

Provided also that no credit of input tax shall be allowed in respect of capital assets purchased or 

acquired before the commencement of this Act. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  where a  registered  dealer  purchases  any 
input  in  the  circumstances  mentioned  in  clause  (a)  or  clause  (b)  or  clause  (c)  or  clause  (d)  of  the  said  
sub-section and,– 

(a)  he  despatches  such  goods  or  the  goods  manufactured  by  consuming  such  goods,  to  a 
commission agent registered under this Act or transfers such goods to its branch or head office within 
the State of Bihar for sale, as the case may be; or 

 (b) he supplies such goods in the course of execution of a works contract to another registered 

dealer to whom he has let out a sub-contract, for use in the execution thereof, 

the input tax credit on the sale or supply, as the case may be, of such goods shall be claimed by the registered 
dealer  selling  the  goods  on  commission  or  using  the  goods  supplied  in  the  execution  of  
sub-contract, as the case may be, in accordance with the provisions of sub-section (1), in such manner as 
may be prescribed.  

(3) No input tax credit under sub-section (1) shall be claimed or be allowed to a registered dealer– 

(a) in respect of goods specified in Schedule IV or such other goods as may be prescribed; or 

(b) in respect of inputs purchased by him from another registered dealer or manufactured by him 

and the right wherein to use is transferred to another dealer; or 

(c) in respect of inputs purchased from a registered dealer permitted to pay tax under the provisions 

of section 15; or  

(d) in respect of inputs consumed for the manufacture of goods specified in Schedule I; or  

(e) in respect of goods used for self consumption or as gift.  

(4) In case the inputs or goods are used partially for the purpose specified in sub- section (3), the claim 

for input tax credit shall stand reduced to the extent they are so used. 

16 

 
(5)(a) No dealer shall claim an input tax credit in respect of inputs purchased unless he is in possession 
of an original copy of the tax invoice, signed and issued by the selling registered dealer, containing the 
prescribed particulars of sale.  

(b) If the original tax invoice is lost, input tax credit shall be allowed only on the basis of a duplicate 

copy of the original tax invoice in the form and manner prescribed. 

17. Exports to be zero-rated.–(1) In the case of a sale in the course of export under section 5 of the 
Central Sales Tax Act, 1956 (74 of 1956); or sale of any input made to any dealer in a special economic 
zone outside the customs territory of India; or sale (including sale outside India and Domestic Tariff Area) 
by an export oriented unit, there shall be no tax payable on the turnover of such sale and the person exporting 
the goods or selling them shall be entitled, in the manner prescribed, to a credit of input tax paid– 

(a) on the purchase of the goods sold in the course of export (excluding sale to Domestic Tariff 
Area)  or  purchase  of  goods  sold  to  any  dealer  in  the  special  economic  zone  or  sale  (including  sale 
outside India and Domestic Tariff Area) by an export oriented unit, or 

(b) on the purchase of inputs and capital assets which have been used for the manufacture of goods 
sold in the course of export (excluding sale to Domestic Tariff Area) or to any dealer in the  special 
economic zone: 

Provided that the input tax credit on account of capital assets shall be allowed only to the extent 

and in the manner prescribed. 

(2) The organisations specified in the Schedule V to this Act shall be entitled to claim a refund of tax 
paid  on  goods  purchased  in  the  State  of  Bihar,  subject  to  such  restrictions  and  conditions  as  may  be 
prescribed and such organisation shall be entitled to a refund of the same only on an application made to 
the prescribed authority within such time and in such manner as may be prescribed. 

18. Rate of tax on packing materials and containers.–Notwithstanding anything contained in section 
14, where any goods packed in any container or packing material are sold or purchased, the container or 
packing material in which such goods are so packed shall be deemed to have been sold or purchased along 
with such goods and the tax under sections 3, 4 and 5 shall be levied on the sale or purchase of such container 
or packing material (whether such packing materials or containers are separately charged for or not) at the 
rate of tax applicable to the sale or the purchase, as the case may be, of such goods: 

Provided that where the price of the goods is less than the container or packing material in which they 
are packed, the rate of tax specified in respect of such containers under sub-section (1) of section 14 shall 
apply. 

CHAPTER V 

REGISTRATION 

19. Registration.–(1) No person liable to pay tax under section 3 or section 4, as the case may be, of 
this Act shall sell or purchase goods unless he has obtained and is in possession of a valid certificate of 
registration: 

Provided that any dealer not liable to pay tax under this Act may also apply for grant of a certificate of 

registration. 

(2) Every person, referred to in sub-section (1), shall apply for the grant of certificate of registration to 
the prescribed authority in the prescribed manner and the prescribed authority, shall, after verifying that the 
application has been duly filled in, grant certificate of registration in the manner as may be prescribed: 

Provided that dealers registered under the Bihar Finance Act, 1981(Bihar Act 5 of 1981), as it stood 
before its repeal by section 94, shall be deemed to be dealers registered under this Act and such dealers 
shall be granted, a certificate of registration within such time and in the manner as may be prescribed and 
such dealers may sell or purchase goods till such time as the certificate of registration is granted to them: 

Provided further that a dealer, who exclusively sells or purchases, goods mentioned in Schedule I, shall 

not be liable for registration. 

17 

 
(3) Every dealer registered under sub-section (1) of section 7 of the Central Sales Tax Act, 1956 (74 of 
1956), shall apply for and obtain a certificate of registration, notwithstanding whether such dealer is not 
liable to pay tax under this Act. 

(4)  Where  the  prescribed  authority,  at  any  time  after  the  grant  of  the  certificate  of  registration,  is 
satisfied upon an inquiry, that the particulars mentioned in the application are incorrect or the applicant has 
suppressed or misrepresented certain material facts, he shall, after giving the applicant an opportunity of 
being heard, and after recording reasons therefor, cancel the certificate of registration granted to him. 

20. Amendment and cancellation of certificate of registration.–(1) The prescribed authority may, 
after  considering  such  information  as  may  be  furnished  by  the  dealer  under  section  23  or  as  may  be 
otherwise received by the said authority, amend the certificate of registration of the dealer in respect of 
whom the information has been furnished or received. 

(2) When– 

(a) any registered dealer discontinues or entirely transfers his business to other persons; or 

(b) the liability of a registered dealer to pay tax under this Act has ceased, 

the dealer shall, forthwith, surrender his certificate of registration in the manner prescribed to the prescribed 
authority and the said authority shall cancel the certificate of registration in the manner prescribed: 

Provided  that,  in  a  case  covered  by  clause  (a),  the  certificate  of  registration  shall  be  deemed  to  be 
inoperative with effect from the date of discontinuance or transfer of the business and, in a case covered by 
clause (b), with effect from the date on which the dealer's liability to pay tax has ceased. 

21. Security.–Where it appears necessary to the prescribed authority to do so for the proper realisation 
of the tax payable under this Act, he may, by an order in writing and for reasons to be recorded therein, 
direct a dealer to furnish such security and in such manner as may be prescribed. 

22. Declared manager.–(1) Every dealer, who is liable to pay tax under this Act, and who is a Hindu 
undivided family, a firm, company or corporation or a society or club or association or who is engaged in 
business as a guardian or a trustee or otherwise on behalf of another person, shall furnish to the prescribed 
authority in the prescribed manner a declaration stating the name and prescribed particulars of the person 
or persons who shall be deemed to be the manager or managers of such dealer's business for the purposes 
of this Act. 

(2) Every dealer shall specifically authorise his manager or officer or any other person to receive any 
form of declaration, make any statement, furnish any return, statement, accounts, produce documents or 
other evidence and any statement made, return or statement furnished, accounts, registers or documents 
produced or evidence given by the manager or any person authorised by him or by the dealer in this behalf, 
in the course of any proceeding under this Act, shall be binding on the dealer. 

23. Furnishing of information by dealers.–If any person or dealer liable to pay tax under this Act– 

(a) transfers or otherwise disposes of his business or any part thereof, whether by way of sale or 

otherwise, or  

(b) acquires any business or part of any business, whether by way of purchase or otherwise, or  

(c) effects any other change in the ownership or constitution of the business, or  

(d) discontinues his business, or shifts his place of business, or 

(e) changes the name, style or nature of his business or effects any change in the class or description 

of goods dealt in by him, or  

(f)  starts  a  new  business  or  joins  another  business  either  singly  or  jointly  with  other  person  or 

persons, or  

(g) effects any change in the particulars furnished in an application under section 19 or declaration 

furnished under section 22, or  

(h) applies for or has an application made against him for insolvency or liquidation under any law 

for the time being in force, or  

18 

 
(i)  makes  a  reference  or  has  a  reference  made  under  the  Sick  Industrial  Companies  (Special 

Provisions) Act, 1985 (1 of 1986), 

he shall, within seven days of the occurring of any of the events aforesaid, inform the prescribed authority 
accordingly, and, if any such dealer dies without doing so, his executor, administrator, successor-in-interest 
or legal representative, as the case may be, shall, within fifteen days of the dealer's death, inform the said 
authority accordingly. 

CHAPTER VI 

RETURNS, ASSESSMENT, RE-ASSESSMENT AND PAYMENT OF TAX 

24. Returns, payment of tax, interest and penalty.–(1) Every person, being– 

(a) a dealer, who is not registered under this Act, by a notice served in the manner prescribed by 

the prescribed authority; 

(b) a registered dealer (other than a dealer permitted under section 15 to pay tax at a fixed rate in 

lieu of the tax payable by him),  

shall furnish a true and complete return in respect of all his transactions relating to sales, purchases, receipts 
and despatches of goods and any other transactions prescribed specifically for each month, on or before the 
end of the next following month to the prescribed authority in such form and in such manner as may be 
prescribed. 

(2) Without prejudice to the provisions contained in sub-section (1), every person, being – 

(a) a dealer, who is not registered under this Act, by a notice served in the manner prescribed by 

the prescribed authority; 

(b) a registered dealer (other than a dealer permitted under section 15 to pay tax at a fixed rate in 

lieu of the tax payable by him), 

shall furnish a true and complete statement in respect of all his transactions relating to sales and purchases 
of goods and any such details as may be prescribed for each completed quarter on or before the end of the 
month following the end of the quarter to the prescribed authority in such form and in such manner as may 
be prescribed. 

(3) Every registered dealer shall furnish to the prescribed authority, on or before the due date, a true 

and complete return in respect of every financial year in the form and manner prescribed. 

Explanation.–In this sub-section, “due date” means– 

(a) where the dealer is a company within the meaning of the Companies Act, 1956 (1 of 1956), the 

30th day of November of the year following the year to which such return relates; 

(b) where the dealer is a person, other than a company,– 

(i) in a case where the accounts of the dealer are required under this Act or any other law to be 
audited or where the report of an accountant is required to be furnished under section 54, the 31st 
day of October of the year following the year to which such return relates; 

(ii) in any other case, the 31st day of July of the year following the year to which such return 

relates. 

(4)  Every  dealer  who  has  been  permitted  to  pay  tax  under  section  15  shall  file  a  quarterly  abstract 
statement for each completed quarter on or before the end of the month following the end of the quarter to 
the prescribed authority in such form and in such manner as may be prescribed. 

(5) If the due date prescribed for the filing of quarterly statement or monthly return or quarterly abstract 
statement or annual return happens to be a holiday, the next date on which the office opens shall be deemed 
to be the due date. 

(6) Notwithstanding anything contained in sub-section (1) or sub-section (2), the prescribed authority 
may,  for  specific  reasons  to  be  recorded  in  writing,  extend  the  date  of  filing  such  return  or  quarterly 
statement, as the case may be, subject to the condition that such an extension may be allowed only once 
and for a period not exceeding thirty days from the due date; but the Commissioner may allow extension 
beyond thirty days for reasons to be recorded in writing subject to the condition that such an extension may 
be allowed only once and that also for a period not exceeding three months. 

19 

 
(7) If a dealer, having furnished a monthly return under sub-section (1) or the quarterly statement under 
sub-section (2),  discovers any  omission  or  wrong  statement  therein,  he  may  furnish  a  revised  return  or 
statement, as the case may be, in the form and manner prescribed to the prescribed authority at any time 
before the due date within the meaning of sub-section (3): 

Provided  that  no  such  return  or  statement  shall  be  taken  into  consideration  if,  upon  information  or 
otherwise and for reasons to be recorded in writing, the prescribed authority is satisfied that the return or 
statement originally furnished was deliberately false or that it was furnished with intent to defraud the State 
Government of its revenue. 

(8) If a dealer fails to furnish the return within the time specified under sub-section (1) or the quarterly 
statement under sub-section (2) or the quarterly abstract statement under sub-section (4), the prescribed 
authority shall, after giving such a dealer an opportunity of being heard in the manner prescribed, impose a 
penalty at the rate of twenty-five rupees for every day of such failure. 

(9) (a) Every dealer liable to furnish the return under sub-section (1) shall also deposit the tax payable, 
according to the return on or before the fifteenth day of the following month in such manner as may be 
prescribed and shall enclose the proof of payment in the form and manner prescribed along with the return. 

(b) Every dealer permitted to pay tax under section 15 shall also deposit the tax, arrived at after applying 
the  rate  specified  in  the  notification  issued  under  section  15  to  his  quarterly  turnover,  on  or  before  the 
fifteenth day of the month following the quarter to which it relates and shall enclose the proof of payment 
in the form and manner prescribed along with the statement required to be furnished under sub-section (4). 

(c) Subject to the provisions of sub-section (10), if any registered dealer submits a revised return under 
sub-section (7) and if the amount of tax due from such dealer according to the revised return is higher than 
the amount which was due according to the original return, such revised return shall be accompanied by a 
receipt showing the payment of extra amount of tax in the manner provided in clause (a). 

(10) If a dealer, required to furnish the return under sub-section (1) or statement under sub-section (4), 
fails to pay the amount of tax payable according to the provisions of sub-section (9), such dealer shall be 
liable to pay interest– 

(a) in respect of tax payable under sub-section (9), by him in accordance with the return or the 

quarterly abstract statement or revised return, as the case may be; or  

(b) in respect of the tax payable for the period for which he has failed to furnish returns under sub-

section (1) or quarterly abstract statement under sub-section (4),  

at the rate of one and a-half per cent. per month of the amount due from the date the tax so payable had 
become due to the date of its payment. 

Explanation.–For the purposes of this sub-section– 

(i) where the period of default in payment of tax covers a period less than a month, the interest 

payable on such tax in respect of such period shall be computed proportionately; 

(ii) “month” shall mean thirty days. 

(11) Any interest levied or penalty imposed under this section shall be without prejudice to any action, 

which is or may be taken under section 81. 

(12) A rebate at the rate of half per cent. of the amount of tax admitted to be due in the return furnished 
under  sub-section  (1),  subject  to  a  maximum  of  fifty  thousand  rupees  in  a  year,  shall  be  allowed  to  a 
registered dealer who has furnished the return within the due dates specified under this section and has paid 
such amount in full on or before the date specified for payment of tax under this section. 

25.  Scrutiny  of  returns.–(1)  The  prescribed  authority  shall,  within  the  time  and  in  the  manner 
prescribed, scrutinize  every  return filed under  sub-sections (1) and  (3)  of  section  24  for  the  purpose  of 
ascertaining that– 

(a) all calculations contained therein are arithmetically accurate; 

(b) the output tax, the input tax, the tax payable and interest payable, if any, have been computed 

correctly and properly; 

(c) the rates of tax have been applied correctly; and 

20 

 
(d) evidence, as prescribed, has been furnished with regard to payment of tax and interest payable, 

if any. 

(2) If, upon scrutiny under sub-section (1), the prescribed authority discovers any error, he shall serve 

a notice in the prescribed form on the concerned dealer directing him to– 

(a) pay,  within thirty  days,  the  extra  amount  of tax along  with the interest, if any,  payable  and 

furnish the challan evidencing such payment; or 

(b) explain, within thirty days, that the return or returns filed by him do not suffer from any error 

and all requirements specified in clauses (a) to (d) of sub-section (1) have been complied with. 

(3) (a) The prescribed authority shall, in a case falling under clause (b) of sub-section (2) and after 
giving the dealer a reasonable opportunity to adduce necessary evidence, pass such order in the matter as it 
may deem fit. 

(b) If, pursuant to an order under clause (a), any tax or interest is found to be payable by a dealer, a 
notice in the form and manner prescribed, shall be served upon the dealer requiring him to pay the tax and 
interest within the time as may be prescribed. 

(c) Any tax or interest payable under clause (b) shall be deemed to be an arrear of tax within the meaning 

of section 39. 

26. Self-Assessment of tax.–(1) Subject to the provisions of section 25, the tax due in respect of a 
financial year from every registered dealer, who has furnished the return and statement mentioned in section 
24, shall be deemed to have been assessed. 

(2) Notwithstanding anything contained in sub-section (1), the Commissioner may, in the interest of 
revenue, select any registered dealer for detailed audit of his business, on the basis of a selection model as 
may  be  prepared  for  such  purpose,  incorporating  therein  such  criteria  as  may  be  deemed  fit  by  the 
Commissioner. 

(3) The audit of the business of a dealer selected under sub-section (2) shall be conducted, within a 
period of twenty-four months from the due date within the meaning of sub-section (3) of section 24, in such 
manner as may be prescribed. 

27. Assessment of dealer not filing returns.–(1) If a registered dealer fails to furnish before the due 

date specified under sub-section (3) of section 24– 

(a) the returns specified under sub-section (1) or sub-section (3) of section 24; or 

(b) the quarterly abstract statement under sub-section (4) of section 24; or 

(c) the statement under sub-section (2) of section 24, 

the prescribed authority shall, after giving the dealer a reasonable opportunity of being heard, assess to the 
best of its judgment, the amount of tax due from the dealer and interest, if any– 

(2) Any assessment made or interest levied under this section shall be without prejudice to any action, 

which is, or may be, taken under section 81. 

28. Assessment of tax of dealers evading registration.–(1) If upon information which has come into 
his possession, the prescribed authority is satisfied that reasonable grounds exist to believe that any dealer 
has been liable to pay tax under this Act in respect of any period, and has nevertheless wilfully failed to 
apply  for  grant  of  certificate  of  registration,  or,  having  so  applied,  failed  to  furnish  any  particulars  or 
information required for the purposes of section 19, the prescribed authority shall, after giving the dealer a 
reasonable opportunity of being heard, assess, to the best of its judgment, the amount of tax due, if any, 
from the dealer in respect of such period and all subsequent periods; and the prescribed authority may, 
direct that the dealer shall pay, by way of penalty, in addition to the amount of tax so assessed, a sum of 
one hundred rupees for every day of the period during which the dealer failed to apply for registration or 
failed to furnish any particulars or information required for the purposes of section 19 or an amount equal 
to the amount of tax assessed, whichever is higher: 

Provided that no proceeding for such assessment shall be initiated except before the expiry of two years 

from the expiry of the period to which it relates: 

21 

 
Provided further that a proceeding initiated under this sub-section shall be completed within a period 

of four years from the date of initiation.  

(2)  Any  assessment  made,  interest  levied  or  penalty  imposed  under  this  section  shall  be  without 

prejudice to any action which is, or may be, taken under section 81. 

29.  Assessment  of  tax  on  disputed  question.–Notwithstanding  anything  contained  in  any  other 
provision of this Act, where the assessment involves a decision on a point which is concluded against any 
of the authorities specified in sub-section (1) of section 10 by a judgment of the Tribunal and an appeal has 
been filed under section 79, then unless otherwise directed by the High Court, the prescribed authority may 
complete the assessment as if the point was not so decided against such authority, but shall stay the recovery 
of such of the dues including tax, penalty, interest or amount forfeited, if any, in so far as they relate to such 
point, until the decision by the High Court and after such decision, may modify the assessment order, if 
found necessary, after giving the dealer a reasonable opportunity of being heard. 

30. Assessment of tax of non-resident dealer doing business temporarily by way of fair, mela, etc.–
(1) Notwithstanding anything contained in section 19, or section 26 and subject to such rules as may be 
prescribed, it shall be open to the prescribed authority or any other officer authorised by the Commissioner 
in this behalf to make provisional or final assessment of turnover of sale or purchase of goods, as the case 
may be, effected by any dealer residing outside the State of Bihar and carrying on business temporarily by 
way of fair, mela or by way of any other similar mode in the State of Bihar. 

(2)  If  a  dealer  referred  to  in  sub-section  (1)  claims  that  the  sales  affected  by  him  are  not  of  goods 

imported by him, the onus to prove such claim shall lie on the claimant. 

31.  Assessment  or  re-assessment  of  tax  of  escaped  turnover.–(1)  If  the  prescribed  authority  is 
satisfied,  either  on  the  basis  of  audit  conducted  under  sub-section  (3)  of  section  26  or  otherwise,  that 
reasonable grounds exist to believe that, in respect of any assessment under this Act or under the Bihar 
Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, during any period, any 
sale or purchases of goods liable to tax under this Act or the said Act, for any reason, has been under-
assessed or has escaped assessment, or has been assessed to tax at a lower rate, or any deduction therefrom 
has been wrongly made, or an input tax credit has incorrectly been claimed, the prescribed authority shall, 
in such manner as may be prescribed and after serving on the dealer a notice in the form and in the manner 
prescribed, proceed to assess or re-assess, as the case may be, the tax payable by such dealer within four 
years from the expiry of the year during which the original order of assessment or re-assessment was passed, 
in a case where the dealer has concealed, omitted or failed to disclose full and correct particulars of such 
sale or purchase or input tax credit, and the provisions of this Act shall, so far as may  be, apply accordingly 
as if the notice under this sub-section was a notice under section 27: 

Provided that the amount of tax shall be assessed or re-assessed after allowing such deductions as were 
allowable during the said period and at the rates at which it would have been assessed had the turnover not 
escaped assessment. 

(2)(a) The prescribed authority shall, in a case where the dealer has concealed, omitted or failed to 
disclose full and correct particulars of such sale or purchase or input tax credit, direct that the dealer shall, 
besides the amount of interest payable under sub-section (10) of section 24, pay by way of penalty, a sum 
equal to three times the amount of tax which is or may be assessed on the turnover of sale or purchase which 
escaped assessment. 

(b) The penalty imposed under clause (a) shall be in addition to the amount of tax, which is or may be 

assessed on the turnover of sale or purchase which escaped assessment. 

(3) Any assessment or re-assessment made and any penalty imposed under this section shall be without 

prejudice to any action, which is or may be taken under section 81. 

32.  Escaped turnover  detected  before  or  at  the time  of  assessment  of  tax.–(1)  If  the  prescribed 

authority is satisfied that any registered dealer– 

(a) has concealed any sales or purchases or any particulars thereof, with a view to reduce the amount 

of tax payable by him under this Act; or 

22 

 
(b) has furnished incorrect statement of his turnover or incorrect particulars of his sales or purchases 
in the return furnished under sub-section (1) of section 24 or quarterly statement under sub-section (2) 
of section 24 or quarterly abstract statement under sub-section (3) of section 24; or 

(c) has claimed input tax credit in excess of the amount of input tax credit to which he is entitled 

under this Act, 

the prescribed authority shall, after giving such a dealer an opportunity of being heard in the prescribed 
manner, by an order in writing, direct that he shall, besides the amount of interest payable under sub-section 
(10) of section 24 and in addition to any tax which may be determined to be payable by him under the Act, 
pay  by  way  of  penalty,  a  sum  equal  to  three  times  the  amount  of  tax  on  the  concealed  turnover  or  on 
concealed or incorrect particulars or excess input tax credit claimed. 

(2)  The  penalty  under  sub-section  (1)  may  be  imposed  before  completion  of  assessment,  and  for 
determining the amount of penalty, the prescribed authority may quantify the amount of tax provisionally 
in the prescribed manner. 

(3) Any penalty imposed under sub-section (1) shall be without prejudice to any action, which is or 

may be taken under section 81. 

33.  Assessment  of  tax  based  on  audit  objections.–Where  an  objection  has  been  made  by  the 
Comptroller and Auditor-General of India in respect of an assessment or re-assessment made or scrutiny of 
any return filed under this Act, the prescribed authority shall proceed to re-assess the dealer with respect to 
whose assessment or re-assessment or scrutiny, as the case may be, the objection has been made in the 
manner prescribed: 

Provided that no order under this section shall be passed without giving the dealer an opportunity of 

being heard. 

34. Assessment of tax proceedings, etc., not to be invalid on certain grounds.–No assessment and 
demand on account of any tax, interest or penalty shall be invalid or affected by reason only of any mistake 
in the name, residence, place of business or status of any person liable to pay the tax, interest of penalty or 
by reason only of clerical error or other defect of form, if the provisions contained in this Act and the rules 
made thereunder have, in substance, been complied with. 

35. Taxable turnover.–(1) For the purposes of this Act, the taxable turnover of a dealer shall be that 

part of his gross turnover which remains after deducting therefrom– 

(a) the aggregate value of the transactions specified in section 6; 

(b) sale price on account of sales exempted under section 7; 

(c) in the case of works contract, the amount remaining after deducting from the gross value of the 

contract the amount on account of the following, namely:– 

(i) labour charges for execution of the works contract, 

(ii) amount paid to sub-contractor on account of labour and services, 

(iii) charges for planning, designing and architects fees, 

(iv) charges for obtaining on hire, the machineries and tools used in the execution of the works 

contract, 

(v) cost of consumables such as water, electricity, fuels, etc., used in execution of the works 

contract, the property in which is not transferred in the course of execution of a works contract, 

(vi) cost of establishment of the contractor to the extent, it is relatable to supply of labour and 

services, 

(vii) other similar expenses relatable to supply of labour and services, 

(viii) profit earned by the contractor to the extent it is relatable to the supply of labour and 

services, and 

(ix) goods or transaction exempted under section 6 or section 7; 

23 

 
(d) value of goods transferred otherwise than by way of sale; 

(e) the value of goods sold but returned to the dealer within a period of six months from the date of 
the original sales and in respect of which the selling dealer has issued to the purchasing dealer a credit 
note specified in section 53; 

(f) sale price at the subsequent stages of sale of such goods as are specified in Schedule IV as being 
subject to tax at the first point of their sale in the State of Bihar, if necessary evidence as required by 
sub-section (2) of section 13 are filed along with the return filed by the dealer under sub-section (3) of 
section 24. 

(2) Where a dealer claims that he is not liable to pay tax on any part of his gross turnover in respect of 
any goods by reason of transfer of such goods by him to any other dealer or to his agent or to his principal, 
as the case may be, for sale, the burden of proving such claim shall be on the dealer and for this purpose, 
along  with  other  evidences  as  may  be  prescribed,  he  shall  furnish  before  the  prescribed  authority  a 
declaration in a form and in the manner prescribed. 

36. Tax payable by a dealer.–The tax payable by a dealer shall be calculated according to the following 

formula, namely:– 

T = A–B 

Where– 

T means the tax payable by the dealer, 

A means the output tax under this Act, and 

B means the total amount of input tax credit allowable to the dealer under section 16 or section 17. 

37. Time limit for completion of proceeding of assessment of tax.–Except for a proceeding under 
sub-section (2) of section 26, section 28, sub-section (1) of section 31 and section 33, no proceeding for 
assessment of tax payable by a dealer under this Act in respect of any period shall be initiated and completed 
except before the expiry of two years from the expiry of such period: 

Provided  that  a  proceeding  for  re-assessment  in  pursuance  of  or  as  a  result  of  an  order  on  appeal, 
revision or review shall be initiated and completed before the expiry of one year from the expiry of the year 
during which such order was communicated to the assessing authority: 

Provided further that the Commissioner may, on being satisfied that it is necessary so to do and for 
reasons to be recorded in writing, extend in a case or class of cases, the said period of two years to such 
further period not exceeding two years. 

38.  Exclusion  of  time  in  assessment  tax  proceedings.–In  computing  the  period  of  limitation 
prescribed for assessment or re-assessment, as the case may be, under section 27 or section 28 or section 
29 or section 30 or section 31 or section 32 or section 33, the time during which any assessment or re-
assessment proceedings remained stayed under the order of any competent court shall be excluded. 

39. Payment and recovery of tax.–(1) The tax payable under this Act  shall be paid in the manner 

hereinafter provided. 

(2) The amount of– 

(i) tax estimated in advance under sub-section (7) of section 3, or  

(ii) tax due according to the returns filed by the dealer where full payment of such amount has not 

been made, or 

(iii) tax assessed or re-assessed under section 26 or section 27 or section 28 or section 29 or section 
30 or section 31 or section 32 or section 33 or in pursuance of or as a result of an  order on appeal, 
revision or review, less the sum, if any, already paid by the dealer, or 

(iv) interest chargeable or penalty imposed, if any, under any of the provisions of this Act,  

shall be paid by the dealer or the person concerned into a Government Treasury or a bank authorised in this 
behalf by the State Government, or in such other manner as may be prescribed and by such date as may be 

24 

 
specified in a notice issued by the prescribed authority for this purpose and the date to be specified shall, 
ordinarily, not be less than thirty days from the date of service of such notice: 

Provided that the authority may, in respect of any particular dealer or a person, and, for reasons to be 
recorded in writing, extend the date of such payment, or allow such dealer to pay tax or interest due and the 
penalty, if any, by instalments in the manner prescribed: 

Provided further that where the prescribed authority considers it expedient in the interest of revenue, it 
may, for reasons to be recorded in writing, require any dealer, or person, to make such payments forthwith. 

(3) If a dealer or a person fails to make payment of any amount of tax by the period specified in the 
notice issued under sub-section (2) or fails to make payment of tax by the date extended or has defaulted in 
making payment of instalments under the first proviso of the said sub-section, the dealer shall, for such 
failure or default, pay, in addition to the amount of tax, an amount by way of simple interest calculated at 
the rate of one and a-half per cent. for each calendar month or part thereof on the amount of such tax. 

(4) Where, in course of any proceeding, the prescribed authority finds that any dealer has– 

(i) wrongly claimed either the whole or part of his turnover as not taxable and, has consequently, 

paid lesser amount of tax than payable by him; or  

(ii) wrongly declared his turnover or any particulars thereof and thereby has reduced the amount of 

tax payable under this Act; or  

(iii) wrongly claimed input tax credit in excess of what he is entitled to under this Act,  

the dealer shall pay, in addition to the amount of tax assessed under any proceeding as aforesaid, simple 
interest at the rate of one and a half per cent. for each calendar month or part thereof on the difference of 
the amount previously admitted and tax finally assessed from the date, the tax would have been payable 
had the dealer not committed any of the acts mentioned in clause (i) or clause (ii) or clause (iii): 

Provided that where the recovery of tax or any part thereof assessed under any proceeding under this 
Act is stayed as a result of an order on appeal or by any competent court, the amount of such interest shall 
be recoverable after the final order is passed and such order is confirmed from the date the tax first became 
due. 

(5) If a dealer or a person has failed, without reasonable cause, to make payment of any amount of tax 
by the date specified in the notice issued under sub-section (2) or forthwith as required by the second proviso 
thereto, or in like manner has failed to make payment of tax and interest by the date extended under the first 
proviso of the said sub-section or has defaulted in payment of instalments or has not paid the amount of 
interest due, the prescribed authority, after giving the dealer a reasonable opportunity of being heard, may 
direct that the dealer shall pay, in the prescribed manner, by way of penalty for such failure, an amount 
which shall be five per cent. per month of the amount payable following the expiry of such date for each 
subsequent month and part thereof.  

(6) Subject to the provisions of sub-sections (2), (4) and (5), any amount of tax, interest together with 
penalty, if any, which remains unpaid after the date specified in the notice issued under sub-section (2), or 
penalty imposed under sub-section (5) and remaining unpaid shall, without prejudice to any other mode of 
recovery, be recoverable as if it were an arrear of land revenue:  

Provided that where an appeal in respect of such amount has been entertained under section 72, the 
appellate authority may, subject to such rules as may be made by the State Government under this Act, stay 
recovery of such amount or portion thereof for so long as the appeal remains pending or for such shorter 
period as the said authority may consider to be adequate.  

40. Advance recovery of tax on sales and supplies to Governments and other persons.–(1) Subject 
to the provisions of section 6, any person responsible for paying sale price or any amount purporting to be 
the full or part payment of sale price in respect of sales or supplies of taxable goods exceeding rupees two 
lakh fifty thousands during a year made to the State Government or the Central Government or a company, 
corporation, Board, authority, undertaking or any other body owned, financed or controlled either wholly 

25 

 
or partly by the State Government or the Central Government, shall, at the time of payment, subject to such 
conditions and restrictions as may be prescribed, deduct an amount at the rate as may be specified by the 
State Government, by a notification, on account of tax on the amount of such payment: 

Provided that the rate or rates to be specified by the State Government shall not be more than the rate 

of tax applicable to the goods sold or supplied. 

(2) Notwithstanding any law or contract to the contrary, the person making such deduction shall be 

lawfully competent to make such deduction. 

(3) The payment of the amount deducted under sub-section (1) into the Government Treasury in the 

prescribed manner, shall be the liability of the person making such deduction. 

(4) The payment of the amount deducted under sub-section (1) into the Government Treasury by the 
person making the deduction shall be deemed to be a payment by or on behalf of the seller or supplier 
concerned. 

(5) If any person contravenes any or all of the provisions of sub-sections (1), (3) and (4), he shall be 
liable to pay, by way of penalty, a sum not exceeding twice the amount of tax deductible under sub-section 
(1): 

Provided that such penalty shall not be imposed unless the person contravening the provisions is given 

an opportunity of being heard by the prescribed authority.  

(6) The provisions of sections 39 and 47 for recovery of any amount of tax due from a dealer shall, 
mutatis  mutandis,  apply  for  recovery  of  any  amount  of  tax  deducted  or  any  penalty  imposed  but  not 
deposited under this section.  

Explanation.–For the purposes of this section, the “person” in this section shall include all officers or 
authorities who are competent or authorised to make payment of the sale-price in respect of sales to the 
State Government or the Central Government or to a company, corporation, Board, authority, undertaking 
or any other body owned, financed or controlled wholly or partly by the State Government or the Central 
Government. 

(7) The provisions of sub-section (5) of section 41 shall, mutatis mutandis, apply, so far as it relates, to 
issuance  of  certificate  to  person  from  whose  bills  deduction  has  been  made  and  for  filing  of  quarterly 
statements by the person making the deductions. 

41. Advance recovery of tax from works contractors.–(1) Subject to the provisions of section 6, 
every  person,  responsible  for  making  any  payment  in  discharge  of  any  liability  on  account  of  valuable 
consideration payable in respect of transfer of property in goods (whether as goods or in some other form) 
vested in the execution of a works contract shall be lawfully competent to deduct an amount at the rate or 
rates, not exceeding four per cent. to be specified by the State Government, in a notification published in 
the Official Gazette, purporting to be a part or full amount of tax payable on the sale of such goods from 
every  bill  or  invoice  raised  by  the  works  contractor  as  payable  by  the  person  and  no  such  payment  or 
discharge  of  any  such  bill  or  invoice  raised  by  a  works  contractor  shall  be  made  without  deduction  as 
aforesaid. 

Explanation.–For the purposes of this section, the “person” in this section shall include all officers and 
authorities  of  the  Central  or  the  State  Government  or  of  a  company,  corporation,  Board,  authority,  co-
operative societies, undertaking or any other body constituted or formed under any Act and of any firm or 
association of persons and organisation:  

Provided that, the State Government may prescribe the conditions subject to which no such deductions 

shall be made.  

(2) No such payment or discharge of any bill or invoice raised in respect of transfer of property in goods 
(whether as goods or in some other form) by a works contractor shall be made without the deduction referred 
to in sub-section (1):  

26 

 
Provided that no deduction under sub-section (1) shall be made where the payment is made as advance 
prior to the commencement of the execution of such works contract until it forms part of the sale price 
payable for transfer of property in goods (whether as goods or in some other form): 

Provided further that no deduction under sub-section (1) shall be made from the payment or any part 

thereof, where– 

(a) the payment or any part thereof does not relate to any transfer of property in goods (whether as 

goods or in some other form) involved in the execution of works contract; 

(b) the dealer produces a certificate issued by the Deputy Commissioner, Commercial Taxes or the 
Assistant  Commissioner,  Commercial  Taxes  or  the  Commercial  Taxes  Officer,  in-charge  of  the 
concerned Circle to the effect that the payment or any part thereof relates to such transfer of property 
in goods (whether as goods or in some other form) on which he has no further liability to pay tax in 
terms of the provisions of section 15 of the Central Sales Tax Act, 1956 (74 of 1956); 

(c) the dealer produces a certificate issued by the Deputy Commissioner, Commercial Taxes or the 
Assistant  Commissioner,  Commercial  Taxes  or  the  Commercial  Taxes  Officer,  in  charge  of  the 
concerned Circle to the effect that the payment or any part thereof relates to such transfer of property 
in goods (whether as goods or in some other form) on which he has no liability to pay tax in terms of 
the provisions of section 6. 

(3)  The  amount  deducted  under  sub-section  (1)  shall  be  adjusted  against  the  amount  of  tax  finally 
assessed or determined as being payable by the concerned works contractor and any amount deducted in 
excess of the tax so assessed or determined shall be refunded in accordance with the provisions of this Act. 

(4) The deduction referred to in sub-section (1) shall be made in the manner prescribed. 

(5)  The  person  making  the  deduction  shall  issue  a  certificate,  in  the  form  and  manner  prescribed, 
containing such particulars as may be required to be mentioned therein, to the works contractor or person 
from whose bill or invoice such deduction has been made and such certificate shall be deemed to be a valid 
discharge  of  liability  in  terms  of  provisions  of  sub-section  (9)  of  section  24 to  the  extent  of  amount  of 
deduction made under sub-section (1). 

(6) If any person contravenes any or all of the provisions of sub-sections (1), (2) and (5), the prescribed 
authority shall, after giving a reasonable opportunity of being heard, by order in writing direct that such 
person shall pay by way of penalty, a sum not exceeding twice the amount of tax deductible or deducted 
and not deposited in the Government Treasury. 

(7) The provisions of sections 39 and 47 shall, mutatis mutandis, apply for recovery of any amount of 

tax deducted but not deposited into the Government Treasury or any penalty imposed under this section. 

42. Production of tax clearance certificate.–Notwithstanding anything contained in any law for the 

time being in force, no person shall be awarded by– 

(i) the State Government; or 
(ii) the Central Government; or 
(iii)  a  company,  corporation,  board,  authority,  undertaking  or  any    other body  which is  owned, 

financed or controlled either wholly or partly by the State Government or the Central Government,  

any contract involving sale or supply of goods and no person shall be granted any licence to carry on any 
trade or commerce unless he produces to the State Government or the Central Government or the company, 
corporation, board, authority, undertaking or any other body which is owned, financed or controlled either 
wholly or partly by the State Government or the Central Government, a tax clearance certificate, granted 
by the prescribed authority in the form and manner prescribed, to the effect that the prescribed authority 
has no objection to the awarding of such contract or the granting of such licence to the person concerned: 

Provided that no such certificate shall be granted to any person who is not a registered dealer under this 
Act or, being a registered dealer, has made a default in the payment of any tax, penalty or interest due under 
this Act: 

Provided further that if a person not liable to tax under this Act applies for the grant of certificate under 
this section and in whose case the value of the contract or, as the case may be, the anticipated turnover in 

27 

 
the immediately succeeding twelve months exceeds the limit specified in sub-section (2) of section 3, he 
shall be granted such certificate subject to the condition that he shall furnish, to the prescribed authority, an 
undertaking to the effect that he shall apply for grant of certificate of registration in the manner and within 
the period prescribed and in the event of failure to do so the concerned Government or person or authority 
shall terminate the contract awarded  to the person. 

43. Restriction on collection of tax by dealers.–(1) Without prejudice to the provisions of sections 40 
and 41, no person, who is not a registered dealer, shall collect from any person any amount, by whatever 
name or description it may be called, towards or purporting to be tax on sale of goods. 

(2) No registered dealer shall collect from any person any such amount exceeding the amount arrived 

at after applying the rate of tax specified under section 14 to the sale price of the goods sold. 

(3) If any person or a registered dealer contravenes the provisions of sub-section (1) or sub-section (2), 
the prescribed authority shall, after giving an opportunity of being heard in the manner prescribed, by an 
order in writing direct that such person or registered dealer shall pay by way of penalty a sum equal to twice 
the amount collected in contravention of the provisions of sub-sections (1) and (2).  

44. Forfeiture of tax collected in violation of this Act.–(1) Any amount collected, by any person in 
contravention of the provisions of sub-section (1) or sub-section (2) of section 43 or any amount collected 
by  any  person by  way  of  tax,  by  whatever  name  called,  or  in  any  other  manner  not payable  under any 
provision of this Act, shall be liable to forfeiture to the State Government. 

(2) If the prescribed authority, in the course of any proceeding under this Act or otherwise, has reason 
to believe that any amount is liable for forfeiture under sub-section (1), it shall serve, on the person who 
has collected such amount, a notice in the prescribed form requiring him to show cause why the said amount 
should not be forfeited to the State Government and on receipt of the reply, if any, and after making such 
inquiries as may be deemed fit, he shall make an order of forfeiture if the amount is found so liable. 

(3)  Where  an  order  of  forfeiture  under  sub-section  (2)  has  been  made,  the  person  making  the 
unauthorised collection shall forthwith pay the amount so forfeited to the State Government, if it has not 
already been paid and on his failure to do so, such amount shall be recoverable from him as if it were a tax 
due from him. 

(4) Where an order for forfeiture is passed, the Commissioner shall publish or cause to be published, in 
the prescribed manner, a notice for information of the persons from whom the amount so forfeited had been 
collected giving such details as may be prescribed. 

(5) On the publication of the notice under sub-section (4) a refund of such amount or part thereof may 
be claimed from the State Government within one year from the date of publication of the said notice by 
the person from whom it was unauthorisedly realised by way of tax and for this purpose the person claiming 
the refund shall make an application in the prescribed form. 

(6) On receipt of an application under sub-section (5), the Commissioner shall hold such enquiry as he 
deems fit and if he is satisfied that the claim is valid and admissible and that the amount so claimed as 
refund was actually paid to the State Government and no refund or remission in respect of that amount was 
granted, the Commissioner shall refund such amount or any part thereof to the person concerned. 

(7) Notwithstanding anything contained in this Act or in any other law  for the time being in force, 
where any amount collected by any person is forfeited to the State Government under this section, such 
forfeiture shall, if the amount forfeited has been paid to the State Government, discharge him of the liability 
to refund the amount to the person from whom it was so collected. 

45. Rounding off of tax liability.–Any tax, interest or penalty payable under this Act shall be rounded 

off to the nearest ten rupees and shall be paid accordingly. 

46. Recovery of tax as arreears of land revenue.–(1) All authorities appointed under section 10 shall, 
for the purpose of recovery of tax, interest and penalty under this Act, have the same powers as are vested 
in the certificate officer under the Bihar and Orissa Public Demand Recovery Act, 1914 (Bihar and Orissa 
Act 4 of 1914). 

(2)  Any  proceeding  under sub-section (1)  before  any  authority  appointed  under  section  10  shall  be 
deemed to be a proceeding for recovery of the public demand under the Bihar and Orissa Public Demands 

28 

 
Recovery  Act,  1914  (Bihar  and  Orissa  Act  4  of  1914)  and  all  provisions  of  the  said  Act  for  recovery, 
attachment, sale, arrest shall mutatis mutandis apply. 

47.  Special  mode  of  recovery  of  tax  and  other  liabilities  under  this  Act.–(1)  Notwithstanding 
anything contained in section 39 or any law or contract to the contrary, the prescribed authority may, at any 
time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last 
address known to the said authority) direct–  

(a) any person from whom any money is due or may become due to a dealer who has failed to 

comply with a notice of demand served under section 39; or 

(b) any person who holds or may subsequently hold any money for or on account of such dealer, 

to pay into Government treasury, in the manner specified in the notice issued under this sub-section, either 
forthwith or upon the money becoming due or being held, or within the time specified in the notice (not 
being before the money becomes due or it is held) so much of the money as is sufficient to pay the amount 
of tax due from the dealer, together with interest and penalty, if any, under this Act or the whole of the 
money when it is equal to or less than that amount. 

(2) The authority issuing a notice under sub-section (1) may, at any time or from time to time, amend 

or revoke any such notice or extend the time for making any payment in pursuance of the notice. 

(3) Any person making any payment in compliance with a notice issued under sub-section (1) shall be 
deemed to have made the payment under the authority of the dealer and the receipt from the Government 
Treasury shall constitute a good and sufficient discharge of the liability of such person to the dealer to the 
extent of the amount specified in the receipt. 

(4) Any person discharging any liability to the dealer after service on him of the notice issued under 
sub-section (1) shall be personally liable to the State Government to the extent of the liability discharged 
or to the extent of the liability of the dealer for tax, interest and penalty, whichever is less. 

(5) Where a person on whom a notice is served under sub-section (1) proves to the satisfaction of the 
authority which issued the notice that the money demanded or any part thereof was not due to the dealer or 
that he did not hold any money for or on account of the dealer, at the time the notice was served on him, 
nor is the money demanded or any part thereof, likely to become due to the dealer or be held for or on 
account of the dealer, nothing contained in this section shall be deemed to require such person to pay into 
the Government Treasury any such money or part thereof, as the case may be. 

(6)  If  any  person  contravenes  any  of  the  provisions  of  sub-sections  (1)  and  (4)  of  this  section,  the 
prescribed authority shall after giving an opportunity of being heard by an order in writing direct that such 
person shall pay by way of penalty a sum not exceeding twice the amount payable under sub-section (1). 

(7) Any amount of money which a person is directed to pay under subsection (1) or for which he is 
personally liable to the State Government under sub-section (4), shall, if it remains unpaid, be recoverable 
as an arrear of land revenue. 

(8) No action shall be taken under this section in respect of any amount of tax, interest and penalty, if 
any, the date of payment of which has been extended or the realisation of which has been stayed under this 
Act during the period of such extension or stay. 

(9) The provisions of this section shall be without prejudice to any action that may be taken for recovery 

of the arrears of tax, interest and penalty, if any, due from the dealer or person. 

48. Liability of surety.–The liability of a surety under this Act shall be co-extensive, to the extent of 
the amount of security, with that of the defaulting dealer and all modes of recovery enforceable against the 
dealer shall be enforceable against the surety by the prescribed authority. 

49. Transfers to defraud revenue void.–Where, during the pendency of any proceeding relating to 
assessment, re-assessment or recovery of any tax, interest or penalty payable under this Act or the Bihar 
Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, any person or dealer 
creates  a  charge  on  or  parts  with  the  possession,  by  any  mode  of  transfer  whatsoever  including  sale, 
mortgage, gift or exchange, of any of his assets in favour of any person with the intention of defrauding the 
revenue, then, notwithstanding anything to the contrary contained in any Act or contract, such charge or 

29 

 
transfer shall be void as against any claim inrespect of any tax or any other sum payable by the dealer as a 
result of the completion of such proceeding or otherwise. 

50. Period of limitation for recovery of tax.–Notwithstanding anything contained in any other law 
for the time being in force, no proceeding, for the purposes of sub-section (6) of section 39 or sub-section 
(7) of section 47, shall be initiated under this Act except before the expiry of twelve years from due date 
within the meaning of sub-section (3) of section 24: 

Provided  that  the  period  of  limitation  for  the  registered  dealer  availing  of  the  tax  deferment  under 
section 23A of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 
94, shall be reckoned from the last date of repayment of the deferred amount of tax: 

Provided further that when an appeal or application for review has been filed, the period of limitation 
as aforesaid shall run from the date of order passed on such appeal, application for review or from the date 
of order passed in pursuance of or as a result of such order, whichever is later. 

51. Tax to be first charge on property.–Notwithstanding anything to the contrary contained in any 
law for the time being in force, any amount of tax and interest and penalty, if any, payable by a dealer or 
any other person under this Act shall be a first charge on the property of the dealer or such person. 

CHAPTER VII 

BOOKS OF ACCOUNT AND FURNISHING OF INFORMATION 

52. Maintenance of accounts.–(1) Every registered dealer (other than a dealer permitted to pay tax 

under section 15), shall– 

(a) keep in such manner as may be prescribed a true and complete account in respect of all goods 

produced, raised, manufactured, processed, bought, sold or delivered or transferred to or by him; 

(b) maintain in such manner as may be prescribed correct and complete accounts of despatches and  

arrivals of goods as also of stock of goods manufactured or transferred. 

(2)  Such dealers  or  persons,  as  may  be  prescribed,  and  such  other  dealers  to  whom  sub-section (1) 

applies, shall, at the end of each financial year, draw up, in the manner as may be prescribed,– 

(a)  a  manufacturing,  trading  and  profit  and  loss  account  and  a  balance  sheet,  in  the  case  of  a  

manufacturer; and 

(b) such accounts as may be prescribed, in any other case: 

Provided that no accounts referred to in sub-section (1) shall be considered, true and complete unless 
such accounts enable the prescribed authority to compute the tax payable and the entitlement of input tax 
credit under the provisions of this Act: 

Provided  further  that  the  accounts  referred  to  in  sub-section  (1)  shall  not  be  considered  true  and 

complete unless they give a true and fair view– 

(i) of the state of affairs of the dealer or the person as at the end of the financial year, in the case of 

the balance sheet; and  

(ii)  of  the  working  results  of  the  dealer  or  the  person  for  the  financial  year,  in  the  case  of  the  

anufacturing, trading and profit and loss account. 

(3) Every dealer or a person required to keep accounts by sub-section (1) shall– 

(a) issue a challan in respect of all transfers of goods from his place of business otherwise than as 

a result of sale, in such form as may be prescribed; and 

(b) preserve all invoices for a period of not less than six years from the end of the year to which 
they  relate, or for a period of two years after the completion of assessment, appeal or revision for the 
year, whichever is later. 

(4) Every dealer permitted to pay tax under section 15 shall– 

(a) maintain accounts showing his purchases and sales during the year and such other accounts, as 

may be prescribed; and 

30 

 
(b) draw up, at the end of each financial year, in the manner as may be prescribed, a trading and 

profit and loss account. 

53. Issue of tax invoice and debit and credit notes.– (1) A registered dealer, making a sale liable to 
tax under this Act, to another registered dealer shall, provide the purchaser at the time of sale, a tax invoice 
containing the particulars specified in sub-section (2) and retain a copy thereof: 

Provided that a tax invoice shall not be issued– 

(a) by a dealer permitted to pay tax under section 15; or 

(b) for the sale in the course of inter-State trade or commerce or export by a dealer,  

and in such cases a retail invoice shall be issued: 

Provided further that not more than one tax invoice shall be issued for each such sale: 

Provided also that if an invoice has been issued under the provisions of the Central Excise Act, 1944 
(1 of 1944), it shall be deemed to be a tax invoice if it contains the particulars specified in sub-section (2). 

(2) The tax invoice issued under sub-section (1) shall contain the following particulars on the original 

as well as copies thereof, namely:– 

(a) the words “Tax Invoice” in a prominent place; 

(b) the name, address and tax payer identification number of the selling registered dealer; 

(c) the name, address and tax payer identification number of the purchaser; 

(d) an individual pre-printed serialised number and the date on which the tax invoice is issued; 

(e) description, quantity, volume and value of goods sold and the amount of tax charged thereon 

indicated separately; 

(f) the signature of the selling dealer or his manager, agent or servant duly authorised by him; and 

(g) the name and address of the printer and first and last serial number of tax invoices printed and 

supplied by him to the dealer. 

(3) A tax invoice in respect of a sale shall be issued in duplicate and the original of which shall be 
issued to the purchaser (or the person taking the delivery, as the case may be) and the duplicate shall be 
retained by the selling dealer. 

(4) Except when a tax invoice is issued under sub-section (1), if a dealer sells any goods exceeding such 
amount in value as may be prescribed, in any one transaction to any person, he shall issue to the purchaser 
a retail invoice containing the particulars specified in sub-section (5) and retain a copy thereof. 

(5) The retail invoice issued under sub-section (4) shall contain the following particulars on the original 

as well as copies thereof, namely:– 

(a) the words “Retail Invoice” or “Cash Memorandum” or “Bill” in  a prominent place; 

(b) the name, address and tax payer identification number of the selling dealer, if registered; 

(c) in case the sale is in the course of inter-State trade or commerce, the name, registration number 
and address of the purchasing dealer and type of any form, under the Central Sales Tax Act, 1956 (74 
of  1956), if any, against which the sale has been made; 

(d) an individual pre-printed serialised number and the date on which the retail invoice is issued; 

(e)  description,  quantity,  volume  and  value  of  goods  sold  and  amount  of  tax  charged  thereon 

indicated separately; and 

(f) the signature of the selling dealer or his servant, manager or agent, duly authorised by him. 

(6)  The  retail  invoice  shall  be  issued  in  duplicate,  and  the  original  of  which  shall  be  issued  to  the 

purchaser and the duplicate copy of which shall be retained by the selling dealer. 

(7) The Commissioner may, by notification, specify the manner and form in which the particulars on a 

tax invoice or retail invoice are to be recorded. 

31 

 
(8) If a purchaser claims to have lost the original tax invoice, the selling dealer may, subject to such 
conditions and restrictions as may be prescribed, provide a copy of such tax invoice clearly marked as a 
copy of the original tax invoice. 

(9) Where a tax invoice has been issued in respect of a sale and– 

(a) the amount shown as tax in that tax invoice exceeds the tax payable in respect of the sale, the 
dealer shall provide the purchaser with a credit note, containing such particulars as may be prescribed; 
or 

(b) the tax payable in respect of the sale exceeds the amount shown as tax on the tax invoice, the 
dealer shall provide the purchaser with a debit note, containing such particulars as may be prescribed. 

(10) Every dealer referred to in sub-section (1) shall preserve books of account including tax invoices 
and  retail invoices until the expiry of six years after the end of the year to which they relate or for such 
other period as may be prescribed. 

(11) If a registered dealer contravenes the provisions of this section, the prescribed authority shall, after 
giving the dealer an opportunity of being heard, direct him to pay by way of penalty a sum equivalent to 
twice the amount of tax payable for each sale in respect of which such contravention has taken place. 

54. Accounts to be audited in certain cases.–(1) Every dealer whose gross turnover exceeds forty 

lakh rupees shall, for the purposes of this Act, get his annual accounts audited by an accountant by– 

(i) the 30th day of November of the following year, in the case of a company formed and registered 

under the Companies Act, 1956 (1 of 1956); and 

(ii) the 31st day of October of the following year, in any other case. 

(2) Every dealer referred to in sub-section (1) shall obtain, by the date specified in that sub-section, a 
report of such audit in the prescribed form duly signed and verified by such accountant and setting forth 
such particulars as may be prescribed and true copy of such report shall be furnished, on or before the due 
date, by such dealer to the prescribed authority. 

Explanation 1.–In this sub-section, “due date” means– 

(a) where the dealer is a company within the meaning of the Companies Act, 1956 (1 of 1956), the 

30th day of November of the year following the year to which such return relates; 

(b) where the dealer is a person, other than a company,– 

(i) in a case where the accounts of the dealer are required under this Act or any other law to be 
audited or where the report of an accountant is required to be furnished under this section, the 31st 
day of October of the year following the year to which such return relates; 

(ii) in any other case, the 31st day of July of the year following the year to which such return 

relates. 

Explanation 2.–For the purposes of this section, “accountant” means a Chartered Accountant within 
the meaning of the Chartered Accountants Act, 1949 (38 of 1949) and includes a person who, by virtue of 
the provisions of sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be 
appointed to act as an auditor of companies registered in any State. 

(3) If the accounts of a registered dealer are not required to be audited in terms of the provisions of sub-
section (1), such dealer shall furnish, to the prescribed authority, the accounts and statements mentioned in 
sub-section (2) of section 52 on or before the 31st day of July of the year following the year to which such 
accounts or statements relate. 

(4) If a dealer contravenes the provisions of sub-section (2) or sub-section (3), the prescribed authority 
shall, after giving the dealer a reasonable opportunity of being heard, impose on him, in addition to any tax 
payable, a sum by way of penalty equivalent to two per cent. of the tax payable by him under section 36 for 
every month, or part thereof, of such default. 

55. Furnishing of information by Government departments, banks, financial institutions clearing 
and forwarding agents and owners of warehouses, godowns and others.–(a) Every bank, including any 
branch  of  a  bank,  or  any  clearing  house  in  the  State  or  any  financial  institution,  department  of  the 

32 

 
Government, corporation, institution, organisations or companies, boards, authorities, undertakings or any 
bodies owned, financed or controlled wholly or partly by the State Government or the Central Government; 
and 

(b) every clearing, forwarding or booking agent or dalal as defined in clause (a) of the Explanation to 

section 59 or a person engaged in the business of transporting goods, 

shall, if so required by any authority appointed under section 10, furnish any such particulars as may be 
required by such authority in respect of the transactions relating to sales or purchases of goods by such 
dealers or any dealer with or through such banks or clearing house or any financial institution, department 
of the Government, corporations, institutions, organisations or companies, boards, authorities, undertakings 
or any other body owned, financed or controlled wholly or partly by the State Government or the Central 
Government. 

CHAPTER VIII 

INSPECTIONS, SEARCH AND SEIZURE  

56. Production of books of account, inspection, search and seizure.–(1) Subject to such rules as may 
be made by the State Government under this Act, any authority appointed under sub-section (1) of section 
10 may, either before or after assessment, require any dealer to produce before it or him any accounts, 
registers or documents or to furnish any information relating to the details of his purchases and sales and 
the stock of goods produced, raised, processed, manufactured, bought, sold or delivered by such dealer, and 
the dealer shall comply with such requirement. 

(2) If reasonable grounds exist to suspect that– 

(a) a dealer, with an intention to reduce his tax liability under the Act, has suppressed any financial 
transaction, element of value addition implicit in the transaction or the stock of goods produced, raised, 
processed, manufactured, bought, sold or delivered by such dealer or has claimed input tax credit in 
excess of his entitlement; or 

(b) any clearing or forwarding agent or a person engaged in the business of transporting goods or 
owner of a warehouse or a godown is keeping or has kept his accounts in such a manner as is likely to 
cause evasion of tax payable under this Act, 

the prescribed authority shall, after making such further inquiries as may be deemed fit and after obtaining 
such authorisation in the manner prescribed, proceed to inspect all the places of business of the dealer or 
the clearing or forwarding agent or the person engaged in the  business of transporting goods or the owner 
of warehouse or godown: 

Provided that if the prescribed authority is satisfied that delay in obtaining such authorisation may be 
prejudicial to the interest of revenue, he may, for reasons to be recorded in writing, proceed to inspect all 
the places of business of the dealer or the clearing or forwarding agent or the person engaged in the business 
of transporting goods or the owner of warehouse or godown without obtaining such authorisation which 
may be granted subsequently. 

(3) The prescribed authority shall have the powers to enter into and search the premises, including the 
place  of  business,  of  such  dealer  or  the  person  and,  for  reasons  to  be  recorded  in  writing,  seize  such 
accounts, registers or documents of the dealer or the person as may be necessary, in the manner prescribed, 
and shall retain the same for so long as may be necessary in connection with any proceeding under this Act 
or for a prosecution under any law: 

Provided that if the dealer or person whose accounts, registers or documents have been seized, applies 
for a copy of the same, he shall be supplied with a photo-copy of the same on payment of appropriate cost 
into a Government Treasury or a bank authorised in this behalf by the State Government: 

Provided further that such authority or inspector may take or cause to be taken such copies of, or extracts 

from, the accounts, registers or documents, as such authority or inspector may consider necessary. 

(4) (a) Any authority referred to in sub-sections (1) and (2) shall have the powers to seize any goods 
not properly accounted for in the books, accounts, registers and other documents of the dealer or the dalal 
as defined in clause (a) of the Explanation to section 59, or the owner of the warehouse, or the clearing, 

33 

 
booking or forwarding agent, or the person engaged in the business of transporting goods in the manner 
prescribed. 

(b) The authority referred to in clause (a) shall, in a case where the dealer or the person in-charge of 
goods as mentioned in clause (a) fails to produce any evidence or fails to satisfy the said authority regarding 
the proper accounting of goods, impose a penalty, after allowing an opportunity of hearing in the prescribed 
manner to the dealer or such person, which shall be equal to three times the amount of tax calculated on the 
value of such goods and the goods shall be released as soon as the penalty is paid. 

(c)  If  the  dealer  or  the  person  in-charge  of the  goods  mentioned in  clause  (a)  requests for time  for 
production of necessary documents in support of proper accounting, the authority referred to in clause (a) 
shall release the goods on the condition that the dealer or such person deposits a security equivalent to three 
times the amount of tax calculated on the value of the goods, either in the form of cash, to be deposited in 
the Government Treasury, or in the form of bank guarantee acceptable to the authority. 

(d) If the goods seized under clause (a) are not claimed by any person, the authority referred to in the 

said clause shall arrange for the safe custody of goods. 

(e) In case the penalty imposed under clause (b) is not paid or the goods remain unclaimed for a period 
of thirty days or more from the date of seizure, the goods so seized shall be sold by auction in the prescribed 
manner and the sale proceeds shall be appropriated towards the amount of penalty imposed under clause 
(b); and the balance of the sale-proceeds, if any, shall be deposited in the Government Treasury and shall 
be refunded to the lawful claimant in the prescribed manner: 

Provided that in the case of goods of a perishable nature, the prescribed authority may decide to sell the 

goods by auction before a period of thirty days. 

(f) In case where the goods have been released on the deposit of a security as mentioned in clause (c) 
and evidence regarding proper accounting of goods, to the satisfaction of the authority referred to in clause 
(a)  is  not  produced  within  thirty  days  from  the  date  on  which  the  security  is  deposited,  the  amount  of 
security shall stand forfeited to the State Government: 

Provided that in case evidence or document to the satisfaction of the authority mentioned in clause (a) 
regarding the proper accounting of goods is produced within the said period of thirty days, the security shall 
be released in the prescribed manner. 

(5) (a) The power conferred under sub-sections (3) and (4) shall include the power to break open the 
lock of any box or receptacle or door of any other place or premises where any accounts, registers or other 
documents or goods may be kept or are reasonably suspected to be kept. 

(b) The powers conferred under sub-sections (3) and (4) shall also include the power to seal any box or 
receptacle, godown or building where any accounts, registers or other documents or goods may be kept or 
are reasonably suspected to be kept. 

(6) An authority appointed under section 10 may require the assistance of any person, public servant or 
police officer in making a search and a seizure or for safe custody of goods seized under this section, and 
such person, public servant or police officer shall render necessary assistance in the matter. 

(7)  Where  any  books  of  account,  other  documents,  money  or  goods  are  found  in  the  possession  or 
control  of  any  person  in  the  course  of  any  search  under  sub-section  (2)  or  sub-section  (3),  it  shall  be 
presumed,  unless  it  is  proved  to  the  contrary,  that  such  books  of  account,  documents,  money  or  goods 
belong to such person. 

Explanation.–For the purposes of this section the expression “proper accounting”, shall– 

(i) in the case of a dealer, mean that the goods have either not been entered in the books of 
account or they have been classified in a manner which is likely to lead to evasion of tax payable 
under this Act; or 

(ii) in the case of the owner of a warehouse, or a clearing, booking or forwarding agent, or a 
person engaged in the business of transporting goods, mean properly entered in such registers and 
accounts as may be prescribed under sub-section (2) of section 59. 

34 

 
(8) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizure 

shall apply, so far as may be, to searches and seizure under this section. 

57.  Cross  checking  or  verification  of  transactions.–(1)  With  a  view  to  preventing  evasion  of  tax 
payable  under  this  Act  and  ensuring  proper  compliance  with  the  provisions  of  this  Act,  the  prescribed 
authority may, from time to time, collect information regarding sales and purchases effected by any class 
of dealers and cause any of such transactions of sale and purchase to be cross-checked. 

(2) For this purpose, the prescribed authority may, from time to time and by issuing a notice, in the 
manner and form prescribed, require any class of dealers to furnish, before such authority and by such date 
as may be specified in the said notice, such information, details and particulars as may be specified in the 
notice, regarding the transactions of sales and purchases effected by the dealers during the period mentioned 
in the said notice. 

(3) The prescribed authority shall cause any of such transactions to be cross-checked with reference to 
the books of account of the purchasing and selling dealers and for this purpose, the prescribed authority 
shall  send  an  intimation  required  for  the  purpose  of  cross-checking,  stating  therein  the  details  of  the 
transactions  proposed  to  be  cross-checked  and  the  time  and  date  on  which  any  officer  or  person  duly 
authorised to cross check the transaction shall visit the place where the books of account are ordinarily kept 
by the dealer. 

58. Survey.–(1) With a view to identifying dealers who are liable to pay tax under this Act, but have 
remained unregistered, the prescribed authority, shall, from time to time, cause a survey of unregistered 
dealers to be done for this purpose. 

(2)  For  the  purposes  of  the  survey,  the  prescribed  authority  may,  by  notice  in  the  prescribed  form, 
require any dealer or class of dealers to furnish the names, addresses and other particulars, in the manner 
specified, of the persons and dealers who have purchased or sold any goods from, or, to, such dealer or 
class of dealers during a given period. 

(3) For the purposes of survey, the prescribed authority may call for, by notice in the prescribed form, 
details and particulars regarding the services provided by public utilities, financial institutions including 
banking companies, clearing and forwarding agents, owners of warehouses, dalals and persons engaged in 
the business of transporting goods which such authority is of the opinion, shall be relevant and useful for 
the purposes of this Act. 

59. Control on clearing, forwarding or booking agent and any person transporting goods.–(1) 
Every clearing, forwarding or booking agent or dalal or a person transporting goods, who during course of 
his business handles the document of title to the goods or transports goods or takes delivery of goods for or 
on behalf of a dealer and having his place of business in the State of Bihar, shall furnish true and complete 
particulars and information relating to his place of business to the prescribed authority, within such time 
and in such manner as may be prescribed. 

(2) Every agent or person referred to in sub-section (1), shall maintain true and complete accounts, 
registers and documents, as may be prescribed, in respect of the goods handled by him and the documents 
of title relating thereto and shall produce the said accounts, registers and documents before the prescribed 
authority as and when required by him. 

(3) If any agent or person referred to in sub-section (1) contravenes the provisions of sub-section (1) or 
sub-section  (2)  in  a  manner  which  is  likely  to  lead  to  evasion  of  any  tax  payable  under  this  Act,  the 
prescribed authority may, without prejudice to any action under section 81, on charge of abetment, after 
giving such agent or person an opportunity of being heard, direct him to pay by way of penalty an amount 
which shall be equal to three times the amount of tax calculated on the value of goods in respect of which 
complete particulars have not been furnished or incorrect particulars or information have been furnished. 

Explanation.–For the purposes of this sub-section– 

(a) “dalal” shall include a person who renders his services for booking of, or taking delivery of, 
consignment of goods at a railway station, booking agency, goods transport company office, or any 
place of loading or unloading of goods or contrives, makes and concludes bargains and contracts for or 
on behalf of any dealer for a fee, reward, commission, remuneration or other valuable consideration or 
otherwise; 

35 

 
(b)  “person  transporting  goods”  shall,  besides  the  owner,  include  the  manager,  agent,  driver  or 
employee of the owner, or person in-charge of a place of loading or unloading of goods other than a 
rail-head,  or  a  post  office,  or  of  a  goods  carrier  carrying  such  goods,  or  a  person  who  accepts 
consignments of such goods for despatch to other places or gives delivery of any consignment of such 
goods to the consignee. 

CHAPTER IX 

CHECK-POSTS AND RESTRICTIONS ON MOVEMENT  

60. Establishment of check-posts.–(1) The State Government may, by notification, set up and erect, 
in such manner as may be  prescribed, check-posts and barriers at any place in the State with a view to 
preventing evasion of tax payable under this Act. 

(2)  Every  person  transporting  goods,  other  than  those  specified  in  Schedule  I  and  subject  to  such 
conditions as may be prescribed, shall, at any check-post or barrier, referred to in sub-section (1) and before 
crossing such check-post or barrier, file before such authority or officer as may be authorised by the State 
Government  in  this  behalf,  a  correct  and  complete  declaration  in  such  form  and  manner  as  may  be 
prescribed. 

(3) Any authority or officer who may be authorised by the State Government in this behalf, may, for 
the purpose of verifying, whether any goods are being transported in contravention of the provisions of sub-
section (2) and in such manner as may be prescribed, intercept, detain and search any goods carrier; and the 
person, transporting goods or for the time being in-charge of goods, shall render all possible assistance to 
such authority or officer in carrying out the search. 

(4) (a) The authority or any officer referred to in sub-section (3) may seize any goods along with the 
vehicle  or  carrier,  which,  he  suspects,  are  being  transported  in  contravention  of  the  provisions  of  
sub-section (2) together with any container or material for the packing of such goods: 

Provided that a list of all the goods seized under this sub-section shall be prepared by such officer and 
be signed by the officer, the dealer or the person in-charge of goods and not less than two witnesses and a 
copy of the seizure list shall be made over to the dealer or the person in charge of the goods, as the case 
may be. 

(b)  The  provisions  of  section  56  shall,  mutatis  mutandis,  apply  in  matters  relating  to  such  seizure, 

penalty, security, release and confiscation of goods. 

61. Restriction on movement of goods.–(1) A person transporting goods– 

(a) from any place outside the State of Bihar to any place inside the State of Bihar, or 

(b) from any place inside the State of Bihar to any place outside the State of Bihar, or 

(c) from any place within the State of Bihar to any other such place,  

shall carry a declaration in such form as may be prescribed supported  by a cash memo, retail invoice, bill 
or  tax invoice,  as the  case  may  be,  in case  the  movement  is  as  a result  of  sale or  a challan  in  case the 
movement is otherwise than as a result of sale, in respect of goods which are being transported on a goods 
carrier, vehicle or a vessel or is otherwise in transit or in transit storage and shall produce such cash memo 
or bill or tax invoice or challan, as the case may be, along with the aforesaid form of declaration on demand 
before the prescribed authority:  

Provided that  the  Commissioner  may  exempt,  by  notification  in the  Official  Gazette,  consignments 
below a particular value or quantity from the requirement of this sub-section in so far as it relates to carrying 
of a declaration. 

(2) Any authority or officer who may be authorised by the State Government in this behalf may, for the 
purpose of verifying whether any goods are being transported in contravention of the provisions of sub-
section  (1)  intercept,  detain  and  search  any  goods  carrier,  vehicle  or  vessel  and  may  also  search  the 
warehouse  or  godown  or  any  other  such  place  of  transit  storage,  where  goods  are  kept  in  course  of 
transportation and if the said authority is satisfied on such verification and search that transportation of 
goods is being made in contravention of the provision of sub-section (1), he may seize any such goods 
together with any container or material for the packing of such goods: 

36 

 
Provided that a list of all the goods seized under this sub-section shall be prepared by such officer and 
be signed by the officer, the dealer or the person in-charge of goods and not less than two witnesses and a 
copy of the seizure list shall be made over to the dealer or the person in charge of the goods, as the case 
may be. 

(3)  The  provisions  of  section  56  shall,  mutatis  mutandis,  apply  in  matters  relating  to  such  seizure, 

penalty, security, release and confiscation of goods. 

Explanation.–For the purposes of this section, the power to seize any goods shall also include the power 

to seize the goods carrier on which the goods are being transported. 

62.  Transportation  of  goods  through  State  of  Bihar.–(1)  If  any  consignment  of  goods  is  being 
transported by road from a place outside the State of Bihar to another such place and the vehicle carrying 
the consignment passes through the territory of the State, the driver or any other person in-charge of the 
vehicle shall obtain transit permission in the prescribed manner from the authority of the first check-post 
falling en route after entry into the State and shall surrender the same transit permission to the authority of 
the last check-post before leaving the State and in the event of failure to do so within seventy-two hours of 
leaving the first check-post falling en route, it shall be deemed that goods so transported have been sold by 
the owner or the person in-charge of the vehicle within the State of Bihar. 

(2) In case the driver or person referred to in sub-section (1) fails to comply with the provisions of sub-
section (1), he shall be liable to pay penalty at the rate of rupees five hundred for every day of the default 
or a sum twice the amount of tax calculated on the value of the goods transported in contravention of that 
sub-section, whichever is higher: 

Provided that no such penalty shall be levied without giving the person an opportunity of being heard: 

Provided further that if the person proceeded against, justifies, beyond any doubt, the reasons for any 
delay exceeding seventy-two hours, the prescribed authority shall, for reasons to be recorded in writing, 
condone the delay. 

CHAPTER X 

LIABILITIES OF REPRESENTATIVE CHARACTER 

63. Liability to pay tax in case of transfer of business.–(1) When the ownership of the business of a 
dealer liable to pay tax under this Act is entirely transferred, the transferor and the transferee, shall jointly 
and severally be liable to pay any tax, interest and penalty, if any, payable in respect of such business and 
remaining unpaid at the time of the transfer and the transferee shall also be liable to pay tax on sales or 
purchases made by the transferee on and from the date of such transfer and shall forthwith apply for the 
grant of a registration certificate unless such certificate is already possessed by him. 

(2) Where a dealer liable to pay tax under this Act transfers the ownership or a part of his business, the 
transferor shall be liable to pay tax in respect of the stock of goods transferred with that part of the business. 

64. Tax payable by deceased dealer shall be paid by his representative.–(1) Where a dealer dies 
after  assessment  but  before  payment  of  the  tax,  interest  or  penalty  payable  by  him  under  this  Act,  his 
executor, administrator, successor-in-interest or legal representative shall be liable to pay out of the property 
of the deceased, to the extent to which it is capable of meeting the charge, the amount payable by such 
dealer. 

(2) When a dealer dies without having furnished the return under section 24 or after having furnished 
the  return  but  before  assessment,  the  prescribed  authority  may  proceed  to  make  an  assessment  and 
determine the amount payable under this Act by the deceased and for the said purpose he may require the 
executor, administrator, successor-in interest or legal representative, as the case may be, of the deceased to 
perform all or any of the obligations, which he might, under the provisions of this Act, have required the 
deceased  to  perform  and  the  amount  thus  determined  shall  be  payable  by  the  executor,  administrator, 
successor-in-interest  or  legal  representative  of  the  deceased  to  the  extent  to  which  the  property  of  the 
deceased is capable of meeting the charge. 

65. Tax-liability of guardian and trustee, etc.–Where the business in respect of which tax is payable 
under  this  Act  is  carried  on  by,  or  is  in  charge  of,  any  guardian,  trustee  or  agent  of  a  minor  or  other 
incapacitated person on behalf of and for the benefit of, such minor or other incapacitated person, the tax 

37 

 
shall be assessed upon and recoverable from such guardian, trustee or agent, as the case may be, in the 
manner  and  to  the  same  extent  as  it  would  be  leviable  upon  and    recoverable  from  any  such  minor  or 
incapacitated person, if he were of full age and sound mind, and if he were conducting the business himself 
and all the provisions of this Act shall apply accordingly. 

66.  Tax-liability  of court of wards.–Where the estate  or  any  portion  thereof of  a  dealer  owning  a 
business in respect of which tax is payable under this Act is under the control of the court of wards, the 
Administrator- General, the official trustee, or any receiver or manager, including any person, whatever his 
designation who in fact manages the business, appointed by, or under the order of a court, the tax shall be 
assessed upon and recoverable from such court of wards, Administrator-General, official trustee, receiver 
or manager in like manner and to the same extent as it would be assessable upon and recoverable from the 
dealer if he were conducting the business himself; and all the provisions of this Act shall apply accordingly. 

67. Liability in case of dissolution of firm, etc.–Where a dealer is a Hindu undivided family, firm or 
association of persons, and such family, firm or association is partitioned, dissolved or disrupted, as the 
case may be– 

(a) the tax, interest and penalty payable under this Act by such family, firm or association of persons 
for the period up to the date of such partition, dissolution or disruption may be assessed as if no partition, 
dissolution or disruption had taken place and all the provisions of this Act shall apply accordingly; and 

(b) every person who was at the time of such partition, dissolution or disruption a member or partner 
of  a  Hindu  undivided  family,  firm  or  association  of  persons  shall,  notwithstanding  such  partition, 
dissolution  or  disruption,  be  liable  severally  and  jointly  for  the  payment  of  tax,  interest  including 
penalty, if any, payable under this Act, by such family, firm or association of persons, whether dues of 
tax, interest or penalty is for the period prior to or after such partition, dissolution or disruption. 

CHAPTER XI 

REFUNDS AND ADJUSTMENTS 

68.  Refunds.–(1)  Subject  to  the  other  provisions  of  this  Act  and  the  rules  made  thereunder,  the 
prescribed authority shall refund to a person the amount of tax, penalty and interest, if any, paid by such 
person in excess of the amount due from him in such manner as may be prescribed. 

(2) Where on account of death, incapacity, insolvency liquidation or other cause a person is unable to 
claim or receive any refund due to him, his legal representative or the trustee or guardian or receiver, as the 
case may be, shall be entitled to claim or receive such refund in the manner prescribed: 

Provided that the prescribed authority shall first apply such excess amount towards the recovery of any 
amount for any period in respect of which a notice under section 39 has been issued and shall then refund 
the balance, if any. 

69. Provisional refunds.–(1) If a registered dealer files any returns or produces any other evidence as 
required by or under this Act, and the return or evidences produced show any amount to be refundable to 
the  dealer,  then  the  dealer  may  apply  in  the  prescribed  form  to  the  prescribed  authority  for  grant  of 
provisional refund. 

(2) The prescribed authority may require the said dealer to furnish such security as may be prescribed 
for an amount equal to the amount of refund and on receipt of such security, the prescribed authority shall, 
subject to rules, grant the dealer a provisional refund of the amount claimed refundable as aforesaid. 

(3) (a) Subject to other provisions of this Act, the refund under sub-section (1) shall be deemed to be 
final if the dealer has no liability under the Act as per his annual return filed under section 24 and the report 
submitted under sub-section (2) of section 54. 

(b)  Upon  the  said  refund  being  final,  the  security,  if  any,  furnished  under  sub-section  (2)  shall  be 

returned to the said dealer. 

(c) If any amount in excess of the amount refunded under sub-section (1) is found to be payable by the 
said dealer in respect of the period for which he had claimed and was allowed such provisional refund, such 
excess shall be recovered as arrears of tax from the dealer and he shall be liable to pay simple interest on 
such excess amount at the rate of one and half per cent. per month or part thereof from the date of grant of 
provisional refund till the date of the payment of such excess amount. 

38 

 
70.  Interest  on  delayed  refund.–(1)  Where  an  amount  required  to  be  refunded  by  the  prescribed 
authority to any person is not refunded to him or the application for refund is not rejected, as the case may 
be, within ninety days of the amount having become refundable, the prescribed authority shall pay such 
person simple interest at the rate of six per cent. per annum or part thereof on the said amount from the date 
immediately following the expiry of the period of ninety days to the date of the refund: 

Provided that where the amount becomes refundable by virtue of an order of the Tribunal or the High 
Court or the Supreme Court, the interest under the provisions of this section shall be payable from the date 
immediately following the expiry of the period of ninety days from the date of receipt of the order of the 
Tribunal, the High Court or the Supreme Court, by the officer whose order forms the subject matter of the 
proceedings before the Tribunal, the High Court or the Supreme Court, to the date of refund. 

(2) If the delay in granting the refund within the period of ninety days aforesaid is attributable to the 
said person, whether wholly or in part, the period of the delay attributable to him shall be excluded from 
the period for which interest is payable. 

(3) Where any question arises as to the period to be excluded for the purposes of calculation of interest 
under  the  provisions  of  this  section,  such  question  shall  be  determined  by  the  Commissioner,  whose 
decision shall be final. 

71. Power to withhold refund in certain cases.–Where an order giving rise to a refund is the subject-
matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the 
authority competent to grant such refund is of the opinion that the grant of the refund is likely to adversely 
affect  the  revenue,  such  authority  (not  being  the  Commissioner)  with  the  previous  approval  of  the 
Commissioner may withhold the refund till such time as is deemed fit: 

Provided that the Commissioner may, on application or otherwise, order for release of such refund if 

he is of the opinion that the situation does not require such action on the part of the prescribed authority. 

CHAPTER XII 

APPEAL, REVISION AND REVIEW 

72. Appeal to Deputy Commissioner and Joint Commissioner.–(1) Subject to such rules as may be 
made by the State Government under this Act, any dealer, objecting to an order of assessment or an order 
levying interest or penalty passed by the prescribed authority against him, or an order under section 25 or 
a person, objecting to an order of penalty passed against him or an order under section 47, may appeal to 
the Joint Commissioner, or, the Deputy Commissioner specially authorised in this behalf. 

(2)  No  appeal  under  sub-section  (1)  shall  be  admitted  unless  the  dealer  objecting  to  an  order  of 
assessment has paid twenty-five per cent. of the tax assessed or full amount of admitted tax, whichever is 
higher. 

(3) Every appeal under this section shall be filed, in such form and the manner, as may be prescribed, 
within forty-five days of the receipt of the notice of demand but where the appellate authority is satisfied 
that the appellant had sufficient reason for not preferring the appeal within time, it may condone the delay. 

(4) The appellate authority while disposing of an appeal against an order, other than an order under 

section 47, may– 

(a) (i) confirm, annul, reduce, enhance or otherwise modify such order; or 

(ii) set aside the order directing the authority below to make fresh order after further enquiry on 

specific points as directed; and 

(b) in other cases, pass such order as it may, for reasons to be recorded in writing, deem fit. 

(5) No order under this section shall be passed without giving reasonable opportunity of hearing to the 

appellant as also the authority whose order has been appealed against. 

73. Appeal to Tribunal.–(1) Subject to such rules as may be made by the State Government, any of 
the  authorities  mentioned  in  section  10  or  any  person  aggrieved  by  an  order  made  by  the  Deputy 
Commissioner or Joint Commissioner under section 72 or the Commissioner under section 74 or section 
77, may, prefer an appeal to the Tribunal. 

39 

 
(2) Where an appeal is preferred by a dealer, such appeal shall not be entertained by the Tribunal unless 
such dealer has deposited in the manner specified by the Tribunal, twenty-five per cent. of the amount in 
dispute: 

Provided that  the Tribunal  may,  for  reasons  to  be  recorded  in  writing,  waive  or  reduce the amount 

required to be deposited under this section. 

(3)  Every  application  for  appeal  under  this  section  shall  be  filed  within  ninety  days  of  the 
communication of the order which is sought to be appealed, but where the Tribunal is satisfied that the 
applicant had sufficient cause for not applying within time, it may condone the delay. 

(4) No order under this section shall be passed without giving the applicant as also the authority whose 

order is sought to be appealed or their representative a reasonable opportunity of being heard. 

(5)  On  receipt  of  an  appeal  under  sub-section  (1),  the  Tribunal  may,  after  giving  the  parties  to  the 
appeal, an opportunity of being heard, pass such order thereon as it thinks fit, confirming, modifying or 
setting aside the order appealed against. 

(6) The Tribunal shall send the copy of every order made by it to the parties to the appeal and to the 

concerned authority against whose order the appeal had been preferred. 

(7) The appeal filed before the Tribunal under sub-section (1) shall be dealt with by it as expeditiously 
as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the 
date of receipt of the appeal. 

74. Revisionary powers of Commissioner.–The Commissioner may, suo motu, call for and examine 
the record of any proceeding recorded by any authority, officer or person subordinate to him under this Act 
and if he considers that any order passed therein is erroneous in so far as it is prejudicial to the interest of 
revenue, pass such order as he deems fit after giving the dealer or the person concerned an opportunity of 
being heard. 

75. Additional evidence in appeal or revision.–A dealer shall not be entitled to produce additional 
evidence whether oral or documentary in appeal before the appellate authority or in revision before the 
Commissioner  or  the  Tribunal  except  where  the  evidence  sought  to  be  adduced  is  evidence,  which  the 
prescribed authority had wrongly refused to admit or which, after exercise of due diligence, was not within 
his knowledge or could not be produced by him before the prescribed  authority or for the production of 
which adequate time was not given by  the prescribed authority and in every such case upon the additional 
evidence being taken on record reasonable opportunity for challenge or rebuttal shall be given. 

76.  Review.–Subject  to  such  rules  as  may  be  made  by  the  State  Government  under  this  Act,  any 
authority appointed under section 10 or the Tribunal may review any order passed by it, if such review is, 
in the opinion of the said authority or the Tribunal, as the case may be, necessary on account of a mistake 
which is apparent from the record: 

Provided that no such review, if it has the effect of enhancing the tax, interest or penalty or of reducing 
a refund shall be made unless the said authority or the Tribunal, as the case may be, has given the dealer, 
or the person concerned a reasonable opportunity of being heard. 

77. Determination of disputed questions.–(1) If any question arises, otherwise than in proceedings 
before a court, or before the prescribed authority has commenced assessment of a dealer under section 27 
or section 28 or section 29 or section 30 or section 31 or section 32 or section 33, whether, for the purposes 
of this Act,– 

(a) any person, society, club or association or any firm or any branch or department of any firm, is 

a dealer, or  

(b) any particular thing done to any goods amounts to or results in the manufacture of goods, within 

the meaning of that term, or  

(c) any transaction is a sale or a purchase, or where it is a sale or a purchase the sale price or the 

purchase price, as the case may be, thereof, or  

(d) any particular person or dealer is required to be registered, or 

(e) in the case of any person or dealer liable to pay tax, any tax is payable by such person or dealer 

in respect of any particular sale or purchase, or if tax is payable, the rate thereof, or 

40 

 
(f) input tax credit can be claimed on any particular transaction of purchase and if it can be claimed, 

what are the conditions and restrictions subject to which such input tax credit can be claimed, or 

(g) the order passed under sub-section (2) of section 25 is just and proper, or 

(h) any other question involving interpretation of any provisions of this Act, 

the Commissioner shall, subject to such rules as may be made, make an order determining such question. 

Explanation.– For the purposes of this sub-section, the prescribed authority shall be deemed to have 
commenced assessment of the dealer under section 27 or section 28 or section 29 or section 30 or section 
31 or section 32 or section 33, when the dealer is served with any notice by the prescribed authority under 
the said sections. 

(2) The  Commissioner  may  direct  that  the  determination  shall  not  affect the  liability  of  any  person 
under this Act, as respect any sale or purchase affected prior to the determination or such date as he may 
specify. 

(3) If any such question arises from any order already passed by any authority or court under this Act 
or the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, no such 
question shall be entertained for determination under this section; but such question may be raised in appeal 
against such order. 

78. Power to transfer proceedings.–(1) The Commissioner may, after giving the parties a reasonable 
opportunity of being heard in the matter, by order in writing after recording his reason for so doing, transfer 
any proceedings or class of proceedings under any provision of this Act, from himself to any other officer 
and  he  may  likewise  transfer  any  such  proceeding,  including  a  proceeding  pending  with  any  officer  or 
already transferred under this section, from any officer to any other officer. 

(2) For the purpose of this section, any proceeding shall be deemed to have commenced only when any 
authority having appropriate jurisdiction issues notice under the provisions of this Act, rules or notifications 
and the proceedings shall be deemed to be pending only after the issue of such notice. 

(3)  Where  no  proceedings  are  pending  before  any  authority,  then  any  authority  having  appropriate 

jurisdiction over a person or dealer, may initiate and complete any proceedings whatsoever. 

Explanation.–In this section, the word “proceedings” in relation to any dealer means all proceedings 
under this Act in respect of any year, which may be pending on the date of such order or which may have 
been completed on or before such date, and also includes all proceedings under this Act which may be 
commenced after the date of such order in respect of the said year in relation to such dealer. 

79. Appeal before High Court.–(1) An appeal shall lie to the High Court from every order passed by 

the Tribunal, if the High Court is satisfied that the case involves a substantial question of law. 

(2) The Commissioner or a dealer aggrieved by any order passed by the Tribunal,– 

(i) under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 

94, on or after the date of commencement of this Act; or 

(ii) under this Act, 

may file an appeal to the High Court, and such appeal under this section shall be filed within ninety days 
from the date of the communication to the dealer or the Commissioner on any question of law arising out 
of such order. 

(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall 

formulate the question. 

(4)  The  appeal  shall  be  heard  only  on  the  question  so  formulated  and  the  respondents  shall,  at  the 

hearing of the appeal, be allowed to argue that the case does not involve such question: 

Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the High 
Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated 
by it, if it is satisfied that the case involves such question. 

41 

 
(5) (a) The High Court shall decide the substantial question of law so formulated or involved and deliver 
such judgment thereon containing the grounds on which such decision is founded and may award such costs 
as it deems fit. 

(b) The High Court may determine any issue which– 

(i) has not been determined by the Tribunal, or 

(ii) has been wrongly determined by the Tribunal, by reason of a decision on such question of law 

as is referred to in sub-section (1). 

(6) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 
1908) relating to appeals to High Court, shall as far as may be, apply in the case of appeals under this 
section. 

80. Case before High Court to be heard by not less than two Judges.–(1) When an appeal has been 
filed before the High Court under section 79, it shall be heard by a bench of not less than two Judges of the 
High Court, and shall be decided in accordance with the opinion of such Judges or of the majority, if any, 
of such Judges. 

(2) Where there is no such majority, the Judges shall state the point of law upon which they differ and 
the case shall then be heard upon that point only by one or more of other Judges of the High Court and such 
point shall be decided according to the opinion of the majority of Judges who have heard the case including 
those who first heard it. 

CHAPTER XIII 

OFFENCES AND PENALTIES 

81. Offences and penalties.–(1) Whoever– 

(a) carries on business as a dealer without being registered in wilful contravention of section 19, or 

(b) fails without sufficient cause to furnish any information required by section 23, or 

(c) fails, without sufficient cause, when directed so to do under section 59, to keep any accounts or 

record in accordance with the directions, or 

(d) fails, without sufficient cause, to furnish any return as required by section 24 by the date and in 

the manner prescribed, 

shall, on conviction, be punished with imprisonment, of either description, for a term which shall not be 
less  than  three  months  but  which  may  extend  to  six  months  and  with  fine  not  exceeding  one  thousand 
rupees. 

(2) Whoever– 

(a) knowingly keeps false account of the value of the goods bought or sold by him in contravention 

of sub-section (1) of section 52 or section 53, or 

(b)  wilfully  attempts,  in  any  manner  whatsoever,  to  evade  any  payment  of  any  tax,  penalty  or 

interest, 

shall, on conviction, be punished with imprisonment, of either description, for a term which shall not be 
less than six months but which may extend to one year and with fine not exceeding two thousand rupees. 

(3) Whoever– 

(a) not being a registered dealer under section 19, falsely represents that he is or was a registered 

dealer at the time when he sells or buys goods; or 
(b) knowingly furnishes a false return; or 
(c) knowingly produces before the prescribed authority, false bill, tax invoice, cash-memorandum, 

voucher, declaration, certificate or other document for any of the purposes of this Act; or 

(d) issues to any person a certificate or declaration under this Act or the rules framed or notifications 
issued thereunder, a bill, cash memorandum, tax invoice, voucher or other document which he knows 
or has reason to believe to be false; or 

42 

 
(e) obstructs any officer making inspection or search or seizure under section 56 or section 61 or 

section 62, 

shall, on conviction, be punished with imprisonment, of either description, for a term which shall not be 
less than one year but which may extend to three years and with fine not exceeding three thousand rupees. 
(4) Whoever aids or abets any person in the commission of any offence specified in sub-section (1) or 
sub-section (2) or sub-section (3) shall, on conviction, be liable for punishment of the description specified 
in respect of the offence in the commission of which he has aided or abetted. 

(5) Notwithstanding anything contained in sub-sections (1) to (4), no person shall be proceeded against 
under these  sub-sections  for  the  commission  of the offences  referred  therein if  the total  amount  of  tax, 
interest or penalties evaded or attempted to be evaded is less than five thousand rupees. 

(6) Where a dealer is accused of an offence specified in sub-section (1) or sub-section (2) or sub-section 
(3), the person declared as manager of the business of the dealer under section 22 shall also be deemed to 
be guilty of such offence, unless he proves that the offence was committed without his knowledge or that 
he had exercised all due diligence to prevent the commission thereof. 

82. Cognizance of offences.–(1) Save as provided in section 81, the punishments inflicted under the 
said section shall be without prejudice to any penalty which may be imposed under the provisions of this 
Act. 

(2) No court shall take cognizance of any offence under this Act except with the previous sanction of 
the  Commissioner  or  any  officer  specially  empowered  in  this  behalf  and  no  court  inferior  to  that  of  a 
Magistrate of the first class shall try any such offence. 

(3)  Notwithstanding  anything  contained  in  the  Code  of  Criminal  Procedure,  1973  (2  of  1974),  all 

offences punishable under section 81 shall be cognizable and bailable. 

83. Investigation of offences.–(1) Subject to such conditions as may be prescribed, the Commissioner 
may authorise either generally or in respect of a particular case or class of cases, any officer or person 
subordinate to him to investigate all or any of the offences punishable under this Act. 

(2) Every officer so authorised shall, in the conduct of such investigation, exercise the powers conferred 
by the Code of Criminal Procedure, 1973 (2 of 1974) upon an officer in-charge of a police station for the 
investigation of a cognizable offence. 

84. Offences by companies and others.–(1) Where an offence under this Act has been committed by 
a company, every person who at the time the offence was committed, was in charge of, and was responsible 
to, the company for the conduct of business of the company as well as the company shall be deemed to be 
guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided  that,  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment provided in this Act if he proves that the offence was committed without his knowledge or that 
he had exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to any neglect on the part of, any director,  manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.–For the purposes of this section– 

(a) “company” means a company incorporated under the Companies Act, 1956 (1 of 1956), and 

includes a body corporate, a firm or other association of individuals; 

(b) “director” in relation to a firm means a partner in the firm. 

(3) Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof 
shall  be  deemed  to  be  guilty  of  the  offence  and  shall  be  liable  to  be  proceeded  against  and  punished 
accordingly: 

Provided that nothing contained in this sub-section shall render the karta liable to any punishment if he 
proves that the offence was committed without his knowledge or that he had exercised all due diligence to 
prevent the commission of such offence: 

43 

 
Provided further that, where an offence under this Act has been committed by a Hindu undivided family 
and it is proved that the offence has been committed with the consent or connivance of, or is attributable to 
any neglect on the part of, any adult member of the Hindu undivided family, such member shall also be 
deemed to be guilty of that offence and shall be liable to be proceeded against and on conviction punished 
accordingly. 

85. Compounding of offences.–(1) The Commissioner may, either before or after the institution of 
proceedings under section 81, accept from any person charged with an offence under sub-section (1) or 
sub-section (2) or sub-section (3) or sub-section (4) of the said section by way of composition of the offence, 
a sum not exceeding ten thousand rupees and where the offence charged was likely to cause or caused 
evasion of any amount of tax payable under this Act, a sum not exceeding three times of such amount, 
whichever is higher. 

(2) On payment of such sum as may be determined  by the Commissioner under sub-section (1), no 

further proceeding shall be taken against the accused person in respect of the same offence. 

CHAPTER XIV 

BUREAU OF INVESTIGATION 

86. Bureau of Investigation.–(1) The State Government may, by an order published in the Official 
Gazette, constitute a Bureau of Investigation and it shall consist of such personnel and such number of 
officers and such hierarchy of supervision and control as may be specified by the State Government in the 
said order: 

Provided that if authorities appointed under sub-section (1) of section 10 are specified as such they 
shall,  without  prejudice  to  the  powers  under  sub-section  (1)  of  section  10,  exercise  the  powers  of  an 
authority under sections 55, 56, 57, 58, 59, 60, 61 and 62 for carrying out the purposes of this Act. 

(2) (a) The State Government may, by an order published in the Official Gazette, vest an officer of the 
Bureau  of  Investigation  with  the  powers  of  an  officer  in-charge  of  a  police  station  under  the  Code  of 
Criminal Procedure, 1973 (2 of 1974) and with such other powers under different Acts, as it may consider 
necessary. 

(b) The Commissioner may, by an order published in the Official Gazette, authorise an officer of the 
Bureau of Investigation to exercise the powers of an authority appointed under section 10 in respect of such 
matters as may be specified in the order. 

(3) The Bureau of Investigation shall function under the control and supervision of the Commissioner, 
and discharge such duties as may be assigned to it by the Commissioner, including investigation of offences 
under section 83 of this Act. 

CHAPTER XV 

MISCELLANEOUS 

87.  Appearance  before  taxing  authorities.–Any  person,  who  is  required  to  appear  before  any 
authority  appointed  under  section  10  or  before  the  Tribunal  or  before  an  officer  of  the  Bureau  of 
Investigation constituted under section 86 in connection with any proceeding under this Act, may appear 
before such authority through– 

(a) a person authorised in the prescribed manner by him in this behalf, being his relative or person 

in his regular and whole time employment, 

(b) a sales tax practitioner who possesses the prescribed qualifications; or 

(c) a legal practitioner, or 

(d) subject to such conditions as may be prescribed, a chartered accountant, or company secretary, 

or cost accountant. 

Explanation.–For the purposes of this section,– 

(a) “chartered accountant” means a chartered accountant as defined in clause (b) of sub-section (1) 
of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of 
practice under sub-section (1) of section 6 of that Act; 

44 

 
(b) “company secretary” means a company secretary as defined in clause (c) of sub-section (1) of 
section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who  has obtained a certificate of 
practice under sub-section (1) of section 6 of that Act; 

(c) “cost accountant” means a cost accountant as defined in clause (b) of sub-section (1) of section 
2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of 
practice under sub-section (1) of section 6 of that Act; 

(d) “legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a 

pleader in practice. 

88. Change of an incumbent of an office.–Whenever, in respect of any proceeding under this Act, any 
person or authority appointed under section 10 ceases to exercise jurisdiction and is succeeded by another 
person who has and exercises jurisdiction, the person so succeeding may continue the proceeding from the 
stage at which the proceeding was left by his predecessor: 

Provided that the dealer concerned may demand that before the proceeding is so continued, the previous 

proceeding or any part thereof be reopened or that before any order is passed against him, he be heard. 

89. Bar to certain proceedings.–Save as provided in section 79, no assessment made and no order 
passed under this Act or rules made thereunder by any authority appointed under section 10 or by the Bureau 
of Investigation or by the Tribunal shall be called in question in any court, and save as is provided in section 
72 or section 73 or section 74 or section 76, no appeal or application for revision or review shall lie against 
any such assessment or order. 

90. Disclosure of information by public servant.–(1) All particulars contained in any statement made, 
return  furnished  or  accounts  or  documents  produced  in  accordance  with  this  Act,  or  in  any  record  of 
evidence given in the course of any proceedings under this Act (other than proceeding before a criminal 
court),  or  in  any  record  of  any  assessment  proceeding,  or  any  proceeding  relating  to  the  recovery  of  a 
demand,  prepared  for  the  purposes  of this  Act,  shall,  save  as  provided  in sub-section  (3),  be  treated as 
confidential;  and  notwithstanding  anything  contained  in the  Indian  Evidence  Act,  1872 (1  of  1872), no 
court shall save as aforesaid, be entitled to require any servant of the Government to produce before it any 
such statement, return, account, document or record or any part thereof, or to give evidence before it in 
respect thereof. 

(2) If, save as provided in sub-section (3), any servant of the Government discloses any of the particulars 
referred to in sub-section (1), he shall, on conviction, be punished with imprisonment, which may extend 
to six months or with fine or with both. 

(3) Nothing in this section shall apply to the disclosure of any of the particulars, referred to in sub-

section (1), made–  

(a) for the purposes of a prosecution under the Indian Penal Code, 1860 (45 of 1860) in respect of 

any statement, return, accounts, registers, documents or evidence, or any part thereof; or  

(b) for the purposes of a prosecution under this Act; or 

(c) for regulating any inquiry under the Public Servant (Inquiries) Act, 1850 (37 of 1850), into the 
conduct  or  behaviour  of  any  authority  or  Inspector  appointed  under  section  10  or  an  officer  of  the 
Bureau of Investigation constituted under section 86 or into the behaviour of any other officer appointed 
to conduct such inquiry; or 

(d) in connection with the trial of a suit in a civil court to which the State of Bihar is a party and 

which relates to any matter arising out of any proceeding under this Act; or 

(e) for the purposes of enabling an officer of the Central Government or of any State Government 

to levy or recover any tax or duty imposed by it; or 

(f) to any officer of the State Government where it is necessary to make such disclosure for the 

purposes of this Act; or 

(g) to any officer of the Central Government or of the State Government for the purpose of enabling 

such officer to perform his executive functions relating to the affairs of the Union or the State. 

45 

 
91. Agreements to defeat intention and application of this Act to be void.–(1) If the Commissioner 
is satisfied that an arrangement has been entered into between two or more persons or dealers to defeat the 
application or purposes of this Act or any provision of this Act, then, the Commissioner may, by order, 
declare the arrangement to be null and void as regards the application and purposes of this Act and he may, 
by the said order, provide for increase or decrease in the amount of tax payable by any person or dealer 
who is affected by the arrangement, whether or not such dealer or person is a party to the arrangement, in 
such manner as the Commissioner considers appropriate so as to counter act any tax advantage obtained by 
that dealer from or under the arrangement. 

(2) For the purposes of this section– 

(i) “arrangement” includes any contract, agreement, plan or understanding whether enforceable in 
law or not, and all steps and transactions by which the arrangement is sought to be carried into effect; 

(ii) “tax advantage” includes,– 

(a) any reduction in the liability of any dealer to pay tax, 

(b) any increase in the entitlement of any dealer to claim input tax credit or refund, 

(c) any reduction in the sale price or purchase price receivable or payable by any dealer. 

(3) Before passing any order under this section, the Commissioner shall afford a reasonable opportunity 

of being heard to any such person or dealer whose tax advantage is sought to be counter acted. 

92.  Write  off  of  dues.–Notwithstanding  anything  contained  in  this  Act,  the  State  Government,  by 
notification to be published in the Official Gazette, may, subject to such rules as may be prescribed, declare 
any dues created under this Act or the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its 
repeal by section 94, as unrecoverable. 

93.  Power  to  make  rules.–(1)  The  State  Government  may,  subject  to  the  condition  of  previous 

publication, by notification, make rules to carry out the purposes of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide 

for all or any of the following matters, namely:– 

(a) the manner in which the advance tax may be collected under sub-section (7) of section 3; 

(b) constitution of the Tribunal under sub-section (1) of section 9; 

(c)  the  terms  and  conditions  of  service  of  the  Chairperson  or  any  other  Government  servant 

appointed as a member of the Tribunal under sub-section (7) of section 9;  

(d) the areas and functions of inspectors under sub-section (3) of section 10; 

(e) the form and manner in which the true and complete declaration referred to in clause (a) of sub-

section (2) of section 13 shall be filed; 

(f) the conditions and restrictions subject to which the registered dealers may be permitted to pay 

an amount under sub-section (1) of section 15; 

(g)  the  conditions  and  restrictions  subject  to  which  an  input  tax  credit  shall  be  claimed  under  

sub-section (1) section 16; 

(h) the manner and the period within which the input tax credit in respect of capital goods shall be 

allowed under clauses (a), (b), (c), (d) and (e) of sub-section (1) of section 16; 

(i) the manner in which the input tax credit on the sale or supply of goods shall be claimed by the 
registered  dealer  selling  the  goods  or  using  them  in  the  execution  of  sub-contract  under  
sub-section (2) of section 16; 

(j) the other goods on which input tax credit shall not be claimed or allowed under clause (a) of 

sub-section (3) of section 16; 

(k) the particulars of sale in the original copy of the tax invoice and the form and manner of the 

duplicate copy of the original tax invoice under sub-section (5) of section 16; 

46 

 
(l) the manner in which input tax credit on goods and the manner and extent in which the input tax 

on account of capital assets shall be allowed under sub-section (1) of section 17; 

(m)  the  restrictions  and  conditions  subject  to  which  and  the  time  and  manner  in  which  the 
organisations  specified  in  the  Schedule  V  to  this  Act  may  apply  for  refund  of  tax  paid  on  goods 
purchased under sub-section (2) of section 17; 

(n) the manner of application for and the grant of certificate of registration under sub-section (2) of 

section 19; 

(o) the manner in which the certificate of registration shall be surrendered and the manner in which 

the certificate of registration shall be cancelled under sub-section (2) of section 20; 

(p) the security and the manner in which such security shall be furnished under section 21;  

(q) the manner in which the declaration shall be furnished and the particulars of the person under 

sub-section (1) of section 22; 

(r) the form and manner in which the returns or statements or notice, as the case may be, under sub-

sections (1), (2), (3), (4) and (7) of section 24 shall be furnished; 

(s) the manner in which the opportunity of being heard is to be provided under sub-section (8) of 

section 24; 

(t) the manner of depositing tax and the form and manner of enclosing the proof of payment of such 

tax under sub-section (9) of section 24; 

(u) the time and manner of scrutiny of return under sub-section (1) of section 25; 

(v) the form of notice to the concerned dealer under sub-section (2) of section 25; 

(w) the form and manner of serving a notice and the time within which the dealer is required to pay 

the tax and interest under clause (b) of sub-section (3) of section 25; 

(x) the manner of conducting an audit of the business of a dealer under sub-section (3) of    section 

26; 

(y) making of provisional or final assessment of turnover of sale or purchase of goods under    sub-

section (1) of section 30; 

(z) the form and manner of notice and the manner of assessment or re-assessment under           sub-

section (1) of section 31; 

(za) the manner in which the opportunity of being heard is to be provided under sub-section (1) of 

section 32; 

(zb) the manner in which the amount of tax may be provisionally quantified under sub-section (2) 

of section 32; 

(zc) the manner in which the re-assessment may be made under section 33; 

(zd) the other evidence to prove and the form and manner of declaration required to be furnished 

under sub-section (2) of section 35; 

(ze) such other manner of payment of tax and the manner of payment of tax, interest due or the 

penalty by instalments under sub-section (2) of section 39; 

(zf) the manner of payment of penalty under sub-section (5) of section 39; 

(zg) the conditions and restrictions subject to which the deduction of tax may be made under   sub-

section (1) of section 40; 

(zh)  the  manner  of  payment  of  amount  into  the  Government  Treasury  under  sub-section  (3)  of 

section 40; 

(zi) the  conditions subject to  which  no  deduction  of  tax  shall be  made  under  sub-section (1)  of 

section 41; 

47 

 
(zj) the manner in which tax referred to in sub-section (1) of section 41 shall be deducted under 

sub-section (4) of section 41; 

(zk) the form and manner of certificate by the person making deduction under sub-section (5) of 

section 41; 

(zl) the form and manner of granting tax clearance certificate under section 42; 

(zm) the manner in which the opportunity of being heard is to be provided under sub-section (3) of 

section 43; 

(zn) the form of notice by the prescribed authority under sub-section (2) of section 44; 

(zo)  the  manner  of  publication  of  notice  and  the  details  therefor  under  sub-section  (4)  of  

section 44; 

(zp) the form of application in which the person may claim the refund under sub-section (5) of 

section 44; 

(zq) the manner of keeping a true and complete accounts under sub-section (1) of section 52; 

(zr) the dealers or persons and the manner of drawing up the manufacturing, trading and profit and 

loss account and a balance-sheet and other accounts under sub-section (2) of section 52; 

(zs) the form of challan to be issued by every dealer or a person under sub-section (3) of     section 

52; 

(zt) the accounts and the manner in which the trading and profit and loss account shall be drawn up 

under sub-section (4) of section 52; 

(zu) the value of goods exceeding which the retail invoice is required to be issued by the dealer 

under sub-section (4) of section 53; 

(zv)  the  period  for  which  invoices  under  sub-section  (7)  of  section  53  may  be  required  to  be 

preserved; 

(zw)  the  conditions  and  restrictions  subject  to  which  a  copy  of  the  original  tax  invoice  may  be 

provided by the selling dealer under sub-section (8) of section 53; 

(zx) the particulars of the credit note and the debit note under sub-section (9) of section 53; 

(zy) the other period for which  the tax invoices and retail invoices are required to be preserved 

under sub-section (10) of section 53; 

(zz) the form of audit report and the particulars thereof under sub-section (2) of section 54; 

(zza) the manner of authorisation to inspect all places of business under sub-section (2) of   section 

56; 

56; 

(zzb) the manner of seizure of accounts, registers or documents under sub-section (3) of      section 

(zzc) the manner of seizure of goods under clause (a) of sub-section (4) of section 56; 

(zzd) the manner in which the opportunity of being heard is to be provided under clause (b) of sub-

section (4) of section 56; 

(zze) the manner of auction of goods and the manner in which the sale proceeds shall be refunded 

under clause (e) of sub-section (4) of section 56; 

(zzf) the manner of release of security under clause (f) of sub-section (4) of section 56; 

(zzg)  the  manner  and  form  of  notice  by  the  prescribed  authority  under  sub-section  (2)  of  

section 57; 

(zzh) the form of notice by the prescribed authority under sub-sections (2) and (3) of section 58; 

(zzi) the time and manner of furnishing information under sub-section (1) of section 59; 

48 

 
(zzj)  the  accounts,  registers  and  documents  required  to  be  maintained  under  sub-section  (2)  of 

section 59; 

(zzk) the manner of erecting check posts and barriers under sub-section (1) of section 60; 

(zzl)  the  form  and  manner  of  furnishing  declaration  and  the  conditions  subject  to  which  such 

declaration shall be furnished under sub-section (2) of section 60; 

(zzm) the manner of intercepting, detaining and searching any goods carrier under sub-section (3) 

of section 60; 

(zzn)  the  form  of  declaration  required  by  a  person  transporting  goods  under  sub-section  (1)  of 

section 61; 

(zzo) the manner of obtaining transit permission under sub-section (1) of section 62; 

(zzp) the manner of refund to a person who paid in excess of the amount due under                  sub-

section (1) of section 68; 

(zzq) the manner of claiming or receiving the refund under sub-section (2) of section 68; 

(zzr) the form of application for grant of provisional refund under sub-section (1) of section 69; 

(zzs) the security to be furnished by the dealer under sub-section (2) of section 69; 

(zzt) the form and manner of filing an appeal under section 72; 

(zzu) the conditions subject to which the offences punishable under this Act may be investigated 

under sub-section (1) of section 83; 

(zzv)  the  manner  of  authorisation  and  the  conditions  subject  to  which  an  accountant,  company 

secretary or sales tax practitioner may appear before taxing authorities under section 87;  

(zzw) declaration by the State Government relating to any dues as unrecoverable under section 92; 

(zzx) the manner of imposition of penalty for breach of any rules made under this section; 

(zzy) the manner and time in which, the particulars of, and the authority to whom, goods held in 

stock is to be declared under section 95; 

(zzz) the manner of claiming input tax credit under sub-sections (1) and (2) of section 96; 

(zzza) the manner and extent of deferment of tax liability under sub-section (3) of section 96; 

(zzzb) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 

be made, or may be, made by rules. 

(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House  of  the  State  Legislature  while  it  is  in  session  for  a  total  period  of  fourteen  days,  which  may  be 
comprised in one session or in two successive sessions, and if, before the expiry of the session in which it 
is so laid or the session immediately following, both Houses agree in making any modification in the rule 
or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such 
modified form or be of no effect, as the case may be; so, however, that any such modification or annulment 
shall be without prejudice to the validity of anything previously done under that rule. 

(4) Any rule made under this section may provide that the contravention thereof shall be punishable 
with fine which may extend to five thousand rupees and where the contravention is continuing one, with a 
further fine which may extend to one hundred rupees per day for every day during which such contravention 
continues. 

94. Repeal and savings.–(1) The Bihar Finance Act, 1981 (Bihar Act 5 of 1981) (hereinafter referred 

to as “the repealed Act”) is hereby repealed from the date of commencement of this Act. 

(2) The repeal shall not affect,– 

(a) any legal proceeding or remedy whether initiated or availed of before or after this repeal, in 

respect of any such right, title, obligation or liability; 

(b)  affect  any  right,  privilege,  obligation,  or  liability  acquired,  accrued  or  incurred  under  the 
repealed  Act  except  the  right  or  privilege  accrued  under  the  repealed  Act  or  the  rules  framed  or 

49 

 
notifications issued thereunder, to industries, granted under any industrial policy or industrial policy 
resolution of the State Government; or 

(c) the levy, assessment or recovery of any tax or the imposition or recovery of any penalty, in 

respect of such period, 

under the provision of the repealed Act; and all proceedings under the repealed Act in respect of matters 
aforesaid shall be initiated and disposed of or continued and disposed of, as the case may be, as if this Act 
has not been passed; and for this purpose all taxing authorities or Inspectors appointed under section 10, 
and the Tribunal constituted under section 9 of, shall exercise all powers and perform all duties conferred 
by or under the repealed Act upon the corresponding authorities appointed under section 9 or section 8 
thereof: 

Provided that any appeal or any revision arising out of any order under the Bihar Finance Act, 1981 
(Bihar  Act  5  of  1981)  shall  be  filed  before,  or  heard  or  disposed  of  by,  the  appropriate  authorities 
mentioned in sections 72, 73 and 74 in the manner as provided therein. 

(3)  All  rules,  orders  and  appointments  made,  notifications  published,  certificates  granted,  powers 
conferred and other things done under the said Act and in force on the commencement of this Act, shall, so 
far as they are not inconsistent with or until they are not modified, superseded or cancelled under this Act, 
be deemed to have been respectively made, published, granted, conferred or done under this Act. 

(4) Save as otherwise provided in sub-sections (2) and (3), the mention of particular matters in those 
sub-sections  shall  not  be  held  to  prejudice  or  affect  the  general  application  of  section  6  of  the  General 
Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal. 

95. Declaration of stock of goods held on 1st April, 2005.–Every dealer who was registered under 
the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, or who makes 
an application for registration as a dealer on the 1st day of April, 2005 shall declare such details regarding 
the stock of goods held by him on the 31st March, 2005 in such manner and with such particulars and within 
such time and to such authority, as may be prescribed.  

96. Transitory provisions.–(1) Where any goods, other than those specified under sub-section (2) of 
section 13 of this Act, held in stock by a registered dealer on the date of commencement of this Act, are 
goods which have already suffered tax on the first point of their sale within the meaning of the Bihar Finance 
Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, are sold by him or are consumed 
in manufacture of other goods on or after the date of commencement of this Act, he shall claim and be 
allowed, in such manner as may be prescribed, an input tax credit under sections 16 and 17 of this Act. 

(2) Where any goods, other than those specified under sub-section (2) of section 13 of this Act, held in 
stock by a registered dealer on the date of commencement of this Act, are goods which have already suffered 
tax on the first point of their sale within the meaning of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), 
as it stood before its repeal by section 94, are used or consumed by him for the manufacture of goods for 
sale within the State of Bihar or in the course of inter-State trade and commerce under section 3 of the 
Central Sales Tax Act, 1956 (74 of 1956) or in the course of export within the meaning of section 5 of the 
Central  Sales  Tax  Act,  1956  on  or  after  the  date  of  commencement  of  this  Act,  he  shall  claim  and  be 
allowed, in such manner as may be prescribed, an input tax credit under sections 16 and 17 of this Act. 

(3) Where– 

(a) any dealer has been granted the facility of deferment of tax payable under section 23A of the 
Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, and who has, 
on the commencement of this Act, not availed of the full entitlement, he shall be allowed to continue 
to defer the tax payable under this Act, in the manner and to the extent prescribed;  

(b) any dealer has been granted the facility of exemption from payment of tax under clause (b) of 
sub-section (3) of section 7 of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its 
repeal by section 94, and who has, on the commencement of this Act, not availed of the full entitlement, 
he shall be allowed to opt for deferment of his tax liability under this Act, in the manner and to the 
extent prescribed. 

(4) Where– 

50 

 
(a) the tax has been collected under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood 
before its repeal by section 94, but the same has not been deposited before the date of commencement 
of this Act, the tax so collected by any person under the said Act shall be deposited in accordance with 
the provisions of the aforesaid Act and the rules made thereunder, as if this Act has not come into force 
and the said Act had not been repealed; 

(b) a return or statement is required to be filed under the Bihar Finance Act, 1981 (Bihar Act 5 of 
1981)  as  it  stood  before  its  repeal  by  section  94,  but  the  same  had  not  been  filed  before  the 
commencement of this Act, such return or statement, as the case may be, shall be filed in accordance 
with the provisions of the aforesaid Act and by the person liable to file such return or statement; 

(c) a return has been filed, under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood 
before its repeal by section 94, by any dealer for any year and no assessment in respect of that year has 
been made before the commencement of this Act, the proceedings for the assessment of that dealer for 
that year shall be made or be continued as if this Act had not come into force and the said Act had not 
been repealed and such assessment shall be made by the prescribed authority under this Act; 

(d) a person has been aggrieved by any decision made or order passed under the Bihar Finance Act, 
1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, and he has not filed any appeal 
or an application for review or revision, such person may file an appeal or make an application for 
revision or review, as the case may be, in accordance with the provision of the said Act and the rules 
made thereunder to the prescribed authority for disposing of such appeal or application; 

(e) any liability of any dealer to pay tax, under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), 
as it stood before its repeal by section 94, had been affected, and such person was entitled to make a 
reference before the High Court under section 48 of the said Act, before the date of commencement of 
this Act, such person may, draw up, within two months of the date of commencement of this Act, a 
reference (if not already made such reference) and refer it to the High Court in accordance with the 
provisions of said section 48, as if the aforesaid Act had not been repealed. 

(5) No interest or penalty shall be leviable or imposable or no prosecution shall be initiated for any 
offence committed under this Act during the period beginning on the 18th April, 2005 and ending on the 
day preceding the day on which this Act comes into force. 

97. Construction of references in any repealed law to officers, authorities, etc.–Any reference in 
any provision of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 
94, to an officer, authority or tribunal shall, for the purpose of carrying into effect the provisions contained 
in section 83, be construed as a reference to the corresponding officer, authority or tribunal appointed or 
constituted by or under this Act; and if any question arises as to who such corresponding officer, authority 
or tribunal is, the decision of the Commissioner thereon shall be final. 

98. Removal of difficulty.–(1) If any difficulty arises in giving effect to the provisions of this Act, the 
State Government may, by order published in the Official Gazette, make such provisions not inconsistent 
with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: 

Provided that no order shall be made under this section after the expiry of a period of two years from 

the commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of State Legislature. 

99. Laying of notifications on the table of the State Legislature.–Every notification issued under this 
Act shall be laid, as soon as may be, after it is published in the Official Gazette, before each House of State 
Legislature while it is in session for a total period of fourteen days which may be comprised in one session 
or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session 
immediately following, both Houses agree in making any modification in the notification or both Houses 
agree  that  the  notification  should  be  annulled,  the  notification  shall  thereafter  have  effect  only  in  such 
modified form or be of no effect, as the case may be; so, however, that any such modification or annulment 
shall be without prejudice to the validity of anything previously done under that notification. 

100. Validation of Bihar Value Added Tax Ordinance, 2005.–Anything done or any action taken 
under the Bihar Value Added Tax Ordinance, 2005 (Bihar Ord. 1 of 2005) (including any order passed, 

51 

 
notification issued and rules made) shall be deemed to be valid and be deemed to have been done or taken 
under the corresponding provisions of this Act. 

52 

 
 
 
SCHEDULE I 

(See section 7) 

Serial 
Number 

Goods 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

Coarse grains. 

Fresh vegetables and fresh fruits. 

Fresh meat, fresh fish and livestock. 

Unprocessed and unbranded salt. 

Fresh milk and pasteurized milk. 

Fresh eggs. 

Unpacked plain water. 

Books, periodicals and journals. 

Unbranded bread. 

Handlooms excluding handloom products. 

Betel leaves. 

Condoms an contraceptives. 

Curd, lassi and butter milk. 

Electrical energy. 

Glass bangles. 

Kumkum and bindi. 

Aids and implements used by handicapped persons. 

Poultry feed and aquatic feed. 

Green garlic and green ginger. 

Firewood. 

Agricultural implements exclusively worked by human or animal power such as rahat, water 
lift,  ploughs  and  parts  thereof,  spades  (kudali),  hoes, phavras,  harrows,  sickles,  khurpies, 
karing, kundi, mowers, cultivators, ridgers, land levellers, axe, gandasa, shears, yokes, hand 
dusters. 

Raw silk. 

Indigenous hand-made musical instruments. 

Raw wool. 

Fresh flowers. 

Saplings. 

Cotton yarn in hank. 

Cart driven by animals. 

Rakhi. 

Sacred thread, commonly known as yagyopawit. 

Idols made of clay. 

53 

 
 
 
 
Serial 

Goods 

Number 

32 

33 

34 

35 

36 

37 

38 

Clay lamps. 

Bangles made of shell, plastic, lac or glass. 

Kites. 

Takhti. 

Poha, murmura, laktho, lai and mukundana. 

Sattu. 

Goods mentioned in clauses (iia), (vii), (viii), (ix) and (x) of section 14 of the Central Sales 
Tax Act, 1956 (74 of 1956). 

54 

 
 
 
SCHEDULE II 

(See section 14) 

Serial 

Goods 

Number 

1 

2 

3 

Gold, silver and other precious metals. 

Articles of gold, silver and precious metals including jewellery made of gold, silver and 
precious metals. 

Precious stones. 

55 

 
 
 
SCHEDULE III 

(See section 14) 

PART I 

Serial 

Goods 

Number 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

Acids. 

Agarbatti. 

All kinds of bricks including refractory bricks and asphaltic roofing. 

All types of yarn except cotton hank yarn. 

Aluminium conductor steel reinforced. 

Aluminium utensils. 

Aluminium,  aluminium  alloys,  their  products  (including  extrusions)  not  elsewhere 
mentioned in this Schedule or in any other Schedule. 

Article made of rolled gold and imitation gold. 

Artificial silk yarn, polyster fibre yarn, and staple fibre yarn. 

Bagasse. 

Basic chromium sulphate, sodium bi-chromate, bleach liquid. 

Beedi leaves. 

Bicycles, tricycles and their spare parts. 

Bone meal. 

Bran oil. 

Branded bread. 

Castor oil. 

Charcoal. 

Chemical fertilizers, pesticides, weedicides and insecticides excluding mosquito repellants. 

Chemicals including caustic soda, caustic potash, soda ash, bleaching powder, sodium bi-
carbonate,  sodium  hydrosulphite,  sulphate  of  alumina,  sodium  nitrate,  sodium  acetate, 
sodium  sulphate,  acid  slurry,  tri-sodium  phosphate,  sodium  tripoly  phosphate,  sodium 
silicate, sodium metasilicate, carboxy methyl cellulose, sodium sulphide, acetic acid, sodium 
bi-sulphite,  oxalic  acid,  sodium  thiosulphate,  sodium  sulphite,  sodium  alginate,  benzene, 
citric  acid,  diethylene  glycol,  sodium  nitrite,  hydrogen  peroxide,  acetaldehyde, 
pentaerythritol, sodium alpha olefin sulphonate, sodium formate, chemical components and 
mixtures and all other chemicals not specified elsewhere in this Schedule or in any other 
Schedule. 

Chillies. 

Clay. 

Cumin seed. 

Declared goods under section 14 of the  Central Sales Tax Act, 1956 (74 of 1956) except 
goods   mentioned in clauses (iia), (vii), (viii), (ix) and (x) of that section. 

De-oiled cake. 

56 

 
 
 
Serial 

Goods 

Number 

26 

Dyes, that is to say, –(i) Acid dyes; (ii) Alizarine dyes; (iii) Bases; (iv) Basic dyes; (v) Direct 
dyes; (vi) Naphthols; (vii) Nylon dyes; (viii) Optical whitening agents; (ix) Plastic dyes; (x) 
Reactive dyes; (xi) Sulphur dyes; (xii) Vat dyes; (xiii) all other dyes not specified elsewhere 
in the Schedule. 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

48 

49 

Edible oils and oil cake. 

Electrodes. 

Embroidery or zari articles, that is to say,–(i) imi; (ii) zari; (iii) kasab; (iv) saima; (v) dabka; 
(vi) chumki; (vii) gota; (viii) sitara; (ix) naqsi; (x) kora; (xi) glass bead; (xii) badla; (xiii) glzal, 
(xiv) embroidery machines, (xv) embroidery needles. 

Fireclay, coal ash, coal boiler ash, coal cinder ash, coal powder, clinker. 

Flour-atta, maida, suji, bran and besan. 

Galvanized iron Pipes. 

Gingili oil. 

Gur and Jaggery. 

Hand pumps and spare parts. 

Hose pipes. 

Hosiery goods. 

Ice. 

Industrial cables. 

Industrial inputs as specified in Part III of this Schedule used exclusively as industrial inputs. 

Information Technology products, as given in Part II of this Schedule, including computers, 
telephone and parts thereof, teleprinter and wireless equipment. 

Khandsari. 

Kirana goods such as: 

i. Spices e.g. garlic, haldi, gol mirch, tejpatta, dhania, jira, laung, ilaichi, sahjira, mangraila, 
dalchini, jaffer, hing, methi, jabitri, saunf, all kinds of adrakh, jatamanshi, tamarind, sonth, 
ajwain, kawabchini and pepper; 

ii. Medical herbs, and 

iii.  Miscellaneous  articles  like  rori,  gulal,  mica  dust,  camphor,  peppermint,  dhup,  broom 
sticks, lohban, arrowroot, sohaga, nausadar, alum, posta and mitha soda. 

Knitting wool. 

Lignite. 

Lime,  lime  stone,  products  of  lime,  dolomite  and  other  white  washing  materials  not 
elsewhere mentioned in this Schedule or in any other Schedule. 

Linear alkyl benezene. 

Maize products. 

Medicine and Drugs of all varieties excluding any cosmetics, perfumery, toiletry and hair 
oil, whether or not such cosmetics, perfumery, toiletry and hair oil is manufactured under 
any  Drug  Licence  and  whether  or  not  such  cosmetics,  perfumery,  toiletry  and  hair  oil 
contains any medicinal properties. 

57 

 
Serial 

Goods 

Number 

50 

51 

52 

53 

54 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

67 

68 

69 

70 

71 

72 

73 

74 

75 

76 

77 

78 

Metals, alloys, metal powders, metal pastes of all types and grades and metal scraps other 
than those declared under section 14 of the Central Sales Tax Act, 1956. 

Mixed PVC stabilizer. 

Napa Slabs (rough flooring stones). 

Ores and minerals. 

Organic manure. 

Palm fatty acid. 

Paper and newsprint including exercise books, paperboard, mill board, straw board, blotting 
paper, cardboard, waste paper (cutting paper), cartridge paper, packing paper, paper bags, 
cartons, cards, blank registers, note books, envelopes, labels, letter pads, writing tablets and 
flat files. 

(i) Paraffin wax of all grade standards other than food grade standard including standard wax 
and match wax; 

(ii) Slack wax. 

Pens of all kinds including refills. 

Plastic footwear. 

Plastic granules. 

Power operated agricultural implements. 

Printing ink excluding toner and cartridges. 

Processed and branded salt. 

Pulp of bamboo. 

PVC pipes. 

Ready-made garments. 

Rubber that is to say,–(a) Raw rubber, latex, dry ribbed sheet of all RMA Grades, tree lace, 
earth  scrap,  ammoniated  latex,  prescribed  latex,  latex  concentrate,  centrifugal  latex,  dry 
crepe rubber, dry block rubber, crumb rubber, skimmed rubber and all other qualities and 
grades of latex; (b) Reclaimed rubber all grades and qualities; (c) Synthetic rubber. 

Safety matches. 

Seeds. 

Sewing thread. 

Ship (including ship building). 

Silk fabrics. 

Solvent oils other than organic solvent oil. 

Sponge iron. 

Stainless steel. 

Starch. 

Tamarind. 

Tractors, harvesters, their implements and spare parts. 

58 

 
 
 
Serial 
Number 

Goods 

79 

80 

81 

82 

83 

84 

85 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

Transmission wires and towers. 

Turmeric. 

Vanaspati. 

Vegetable oil. 

Water when sold in sealed container. 

Writing instruments. 

Renewable energy devices and spare parts such as flat solar collectors, concentrating and 
pipe  type  solar  collectors,  solar  water  heaters  and  systems,  air/gas/fluid  heating  systems, 
solar crop dealers and systems, solar stills and declination systems, solar pumps based on 
solar  thermal  and  solar  photovoltaic  conversion,  solar  power  generating  systems,  solar 
photovoltaic nodules and panels for water pumping and other applications, wind mills and 
any  specially  designed  devices  on  wind  mills,  any  special  devices  including  electric 
generators and pumps running on wind energy, bio-gas plants and bio-gas engines and bio-
gas fires, agricultural and municipal water conversion devices producing energy, equipment 
for  utilising  geothermal  energy,  portable  varieties  of  improved  solar  chullah,  solar 
refrigeration,  solar  cold  storage  and  solar  air  conditioning  systems,  electricity  operated 
vehicles including battery powered or fuel cell powered vehicles. 

PART II 

Word processing machines and electronic typewriters. 

Electronic calculators. 

Computer systems and peripherals, electronic diaries. 

Parts and accessories of goods specified at serial numbers 1, 2, 3 above. 

DC Micrometers/stepper motors of an output not exceeding 37.5 watts. 

Parts of goods specified at serial number 5 above. 

Uninterrupted Power Supplies and their parts. 

Permanent magnets and articles intended to become permanent magnets (Ferrites). 

Electrical apparatus for line telephony or line telegraphy, including line telephone sets with 
cordless handsets and telecommunication apparatus for carries-current line systems or for 
digital line systems; Videophones. 

Microphones, Multimedia speakers, headphones, earphones and combined microphone/ 
speaker sets and their parts. 

Telephone answering machines. 

Parts of telephone answering machines. 

Prepared unrecorded media for sound recording or similar recording of other phenomena. 

Information Technology software on any media. 

Transmission  apparatus  other  than  apparatus  for  radio  broadcasting  or  TV  broadcasting, 
transmission apparatus incorporating reception apparatus, digital still image video cameras. 

Radio communication receivers, Radio pagers. 

59 

 
 
 
Serial 

Goods 

Number 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

(i) Aerials, antennas and their parts. 

(ii) Parts of goods specified at serial number 14 and 15 above. 

LCD Panels, LED Panels and parts thereof. 

Electrical capacitors, fixed, variable or adjustable (Pre-set) and parts thereof. 

Electrical resistors (including rheostats and potentiometers), other than heating resistors. 

Printed circuits. 

Switches,  connectors  and  Relays  for  up  to  5  Amps  at  voltage  not  exceeding  250  volts, 
electronic fuses. 

Data/Graphic display tubes, other than TV picture tubes and parts thereof. 

Diodes,  transistors  and  similar  semi-conductor  devices,  Photosensitive  semi-conductor 
devices, including Photovoltaic cells whether or not assembled in modules or made up into 
panels; Light emitting diodes; Mounted piezo-electric crystals. 

Electronic Integrated Circuits and Micro-assemblies. 

Signal generators and parts thereof. 

Optical fibre cables. 

Optical fibre and optical fibre bundles and cables. 

Liquid Crystal Devices, Flat Panel Display Devices and parts thereof. 

Cathode  ray  oscilloscopes,  Spectrum  Analyzers,  Cross-talk  meters,  Gain  measuring 
instruments,  Distortion  factor  meters,  Psophometers,  Network  and  Logic  Analyzer  and 
Signal Analyzer. 

PART III 

Animal (including fish) fats and oils, crude, refined or purified. 

Glycerol, crude, glycerol waters and glycerol lyes. 

Vegetable  waxes  (other  than  triglycerides),  beeswax,  other  insect  waxes  and  spermacell, 
whether  or  not  refined  or  coloured;  degras;  residues  resulting  from  the  treatment  of  tall 
substances or animal or vegetable waxes. 

Animal or vegetable fats boiled, oxidized, dehydrated, sulphurised, blown, polymerized by 
heat  in  vacuum  or  in  inert  gas  or  otherwise  chemically  modified  inedible  mixtures  or 
preparations of fats and oils. 

Liquid glucose (non-medicinal). 

Denatured ethyl alcohol of any strength. 

Manganese ores and concentrates, including ferruginous manganese ores and concentrates 
with a manganese content of 20% or more, calculate on dry weight. 

Copper ores and concentrates. 

Nickel ores and concentrates. 

Cobalt ores and concentrates. 

Aluminium ores and concentrates. 

Lead ores and concentrates. 

Zinc ores and concentrates. 

60 

 
Serial 

Goods 

Number 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

45 

46 

47 

Tin ores and concentrates. 

Chromium ores and concentrates. 

Tungsten ores and concentrates. 

Uranium or thorium ores and concentrates. 

Molybdenum ores and concentrates. 

Titanium ores and concentrates. 

Niobium, tantalum, vanadium or zirconium ores and concentrates. 

Precious metal ores and concentrates. 

Other ores and concentrates. 

Granulate slag (slag sand) for the manufacture of iron or steel. 

Benzole. 

Toluole. 

Xylole. 

Naphthalene. 

Phenols. 

Creosote oils. 

Fluorine, chlorine, bromine and iodine. 

Sulphur, sublimed or precipitated; colloidal sulphur. 

Carbon (carbon blacks and other forms of carbon not elsewhere specified or included). 

Hydrogen, rare gases and other non-metals. 

Alkali  or  alkaline-earth  metals;  rare-earth  metals,  scandium  and  yttrium,  whether  or  not 
intermixed or inter alloyed; mercury. 

Hydrogen chloride (hydrochloric acid); chlorosulphuric acids. 

Sulphuric acid and anhydrides thereof; oleum. 

Nitric acid; sulphonitric acids. 

Diphosphorus pentaoxide; phosphoric acid and polyphosphoric acids. 

Oxides of boron: boric acids. 

Halides and halide oxides of non-metals. 

Sulphides of non-metals; commercial phosphorus trisulphide. 

Ammonia, anhydrous or in aqueous solution. 

Sodium  hydroxide  (caustic  soda);  potassium  hydroxide  (caustic  potash);  peroxides  of 
sodium or potassium. 

Hydroxide and peroxide of magnesium; oxides, hydroxides and peroxides of strontium or 
barium. 

Aluminium hydroxide. 

Chromium oxides and hydroxides. 

Manganese oxides. 

61 

 
Serial 

Goods 

Number 

48 

49 

50 

51 

52 

53 

54 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

67 

68 

69 

70 

71 

72 

73 

74 

75 

76 

77 

Iron oxides and hydroxides. 

Cobalt oxides and hydroxides; commercial cobalt oxides. 

Tatanium oxide. 

Hydrazine and hydroxylamine and their inorganic salts; other inorganic bases; other metal 
oxides, hydroxides and peroxides. 

Fluorides; fluorosilicates, fluoroaluminates and other complex fluorine salts. 

Chlorides, chloride oxides and chloride hydroxides, bromides and bromide oxides; iodides 
and iodide oxides. 

Chlorates and perchlorates; bromates and perbromates; lodates and periodates. 

Sulphides; polysulphides. 

Dithionites and sulphoxylates. 

Sulphides; thiosulphates. 

Copper sulphate. 

Nitrites; nitrates. 

Phosphinates 
polyphosphates. 

(hypophosphites), 

phosphonates 

(phosphates), 

phosphates 

and 

Carbonates; peroxocarbonates (percarbonates); commercial ammonium. 

Cyanides, cyanide oxides and complex cyanides. 

Fulminates, cyanates and thiocyanates. 

Borates; peroxoborates (perborates). 

Sodium dichromate. 

Potassium dichromate. 

Radioactive  chemical  elements  and  radioactive  isotopes  (including  the  fissile  chemical 
elements  and  isotopes)  and  their  compounds;  mixtures  and  residues  containing  these 
products. 

Isotopes  compounds,  inorganic  or  organic  of  such  isotopes,  whether  or  not  chemically 
defined. 

Compounds,  inorganic  or  organic,  of  rare  earth  metals,  of  yttrium  or  of  scandium  or  of 
mixtures of these metals. 

Phosphides, whether or not chemically defined excluding ferrophosphours. 

Calcium carbide. 

Cyclic hydrocarbons. 

Halogenated derivatives of hydrocarbons. 

Sulphonated, nitrated or nitrosated derivatives of hydrocarbons, whether or nor halogenated. 

Cyclic alcohols and their halogenated, sulphonated nitrated or nitrosated derivatives. 

Halogenated, sulphonated, nitrated or nitrosated derivatives of phenols or phenol-alcohols. 

Ethers,  ether-alcohols,  ether-phenols,  ether-alcoholphenols,  alcohol  peroxides,  ether 
peroxides,  ketone  peroxides  (whether  or  not  chemically  defined)  and  their  halogenated, 
sulphonated, nitrated or nitrosated, derivatives. 

62 

 
63 

 
 
 
Serial 

Goods 

Number 

78 

79 

80 

81 

82 

83 

84 

85 

86 

87 

88 

89 

90 

91 

92 

93 

94 

95 

96 

97 

98 

99 

100 

101 

102 

103 

Epoxidees, epoxyalcohols, epoxyphenols and epoxyethers, with a three-membered ring and 
their halogenated, sulphonated, nitrated or nitrosated derivatives. 

Acetals and hemiacetals, whether or not with other oxygen function and their halogenated, 
sulphonated, nitrated or nitorsated derivatives. 

Aldehydes,  whether  or  not  with  other  oxygen  function;  cyclic  polymers  of  aldehydes; 
paraformaldehyde. 

Halogenated, sulphonated, nitrated or nitrosated derivatives. 

Saturated  acyclic  monocarboxylic  acids  and  their  anhydrides,  halides,  peroxides  and 
peroxyacides; their halogenated, sulphonated, nitrated or nitrosated derivatives. 

Unsaturated  acyclic  monocarboxylic  acid,  cyclic  monocarboxylic  acid,  their  anhydrides, 
halides, peroxides  and  peroxyacids;  their  halogenated,  sulphonated,  nitrated  or nitrosated 
derivatives. 

Polycarboxylic  acids,  their  anhydrides,  halides,  peroxides  and  peroxyacids;  their 
halogenated sulphonated, nitrated or nitrosated derivatives. 

Carboxylic acids with additional  oxygenfunction and their anhydrides, halides, peroxides 
and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives. 

Phosphoric esters and their salts including lactophosphates; their halogenated sulphonated, 
nitrated nitrosated derivatives. 

Esters of other inorganic acids (excluding esters of hydrogen halides) and their salts; their 
halogenated; sulphonated, nitrated or nitrosated derivatives. 

Amine-function compounds. 

Oxygen-function amino-compounds. 

Quaternary ammonium salts and hydroxides, leetcithins and other phosphoaminolipids. 

Carboxyamind-function compounds: amide-function compounds of carbonic acid. 

Carboxyamide function compounds (including saccharin andnits salts) and iminefunction 
compounds. 

Nitrile-function compounds. 

Diazo, Axo-orazoxy compounds. 

Organic derivatives of hydrazine or of hydroxylamine. 

Organo-sulphou compounds. 

Ethylene Diamine Tetra Acetic Acid. Nitrillo Triaccetric acid and their derivatives. 

Hetrocyclic compounds with oxygen heteroatom(s) only. 

Hetrocyclic compounds with nitrogen heteroatom(s) only. 

Nucleic acids and their salts; other heterocyclic compounds. 

Sulphonamides. 

Glycosides,  natural  or  reproduced  by  synthesis  and  their  salts,  ethers,  esters  and  other 
deritaves. 

Vegetable  alkaloids,  natural  or reproduced  by  synthesis and  their salts,  ethers,  esters  and 
other derivatives. 

104 

Ethylene Diamine Tetra Acetic Acid, nitrillo triaccetric acid and their derivatives. 

64 

 
Serial 

Goods 

Number 

105 

106 

107 

108 

109 

110 

111 

112 

113 

114 

115 

116 

117 

118 

119 

120 

121 

122 

123 

124 

125 

126 

127 

128 

129 

Tanning  extracts  of  vegetable  origin;  tannis  and  their  salts,  ethers,  esters  and  other 
derivatives. 

Synthetic  organic  tanning  substances;  inorganic  tanning  substances;  tanning  preparations 
whether  or  not  containing  natural  tanning  substances;  enbzymatic  preparations  for 
pretanning. 

Colouring  matter  of  vegetable  or  animal  origin  (including  dyeing  extracts  but  excluding 
animal black), whether or not chemically defined; preparations based on colouring matter of 
vegetable or animal origin. 

Synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent 
brightening agents or as luminophores, whether or not chemical defines. 

Colour lakes; preparations based on colour lakes. 

Glass frit and other glass, in the form of powder, granules or flakes. 

Prepared driers. 

Printing ink whether or not concentrated or solid. 

Casein, caseinates and other casein derivatives, casein glues. 

Enzymes; prepared enzymes not elsewhere specified or included. 

Artificial graphite: colloidal or semi-colloidal graphite; preparations based on graphite or 
other carbon in the form of pastes, blocks, plated or other semi-manufactures. 

Activated carbon: activated natural mineral products: animal black, including spent animal 
black. 

Residual lyes from the manufacture of wood pulp, whether or not concentrated, desugared 
or chemically treated, including ligning sulphonates. 

Resin and resin acids, and derivatives thereof: resin spirit and resin oils; run gums. 

Wood tar; wood tar oils; wood creosote; woods naptha; vegetable pitch; brewers pitch and 
similar preparations based on rosin, resin acids or on vegetables pitch. 

Finishing  agents,  dye  carriers  to  accelerate  the  dyeing  or  fixing  of  dye-stuffs  and  other 
products and preparations (for example, dressing) and mordant of kind used in textile, paper, 
leather or liked industries, not elsewhere specified or included. 

Prepared  rubber  accelerator;  compound  plasticisers  for  rubber  or  plastics,  not  elsewhere 
specified or included anti-oxidising preparations and other compound stabilisers for rubber 
or plastics. 

Reducers and blanket wash/roller wash used in the printing industry. 

Reaction intiators, reaction accelerators and catalytic preparations, not elsewhere specified 
or included. 

Mixed alkylbenzenes and mixed alkyaphthalaenes. 

Chemical elements doped for use in electronics, in the form of dises, wafers or similar forms: 
chemical compounds doped for use in electronic. 

Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols. 

Retarders used in the printing industry. 

Polymers of propylene or of other olefins, in primary forms. 

Acrylic polymers in primary forms. 

65 

 
Serial 
Number 

Goods 

130 

131 

132 

133 

134 

135 

136 

137 

138 

139 

140 

141 

142 

143 

144 

145 

146 

147 

148 

149 

150 

151 

Polyacetals, other polyethers and expoxide resins in primary forms, polycarbonates, alkyd 
resins, polyallyl esters and other polyesters in primary forms. 

Polyamides in primary forms. 

Amino-resins, polyphenylene oxide, phenolic resins and plyurethanes in primary forms. 

Silicones in primary forms. 

Petroleum resins, coumarone-indene resins, polyterpenes, polysulphides, polysulphides. 

Cellulose  and  its  chemical  derivatives,  and  cellulose  ethers,  not  elsewhere  specified  or 
included in primary forms. 

Natural  polymers  (for  example  alginic  acid)  and  modified  natural  polyers  (for  example, 
hardened  proteins,  chemical  derivatives  of  natural  rubber),  not  elsewhere  specified  or 
included, in primary forms. 

Ion-exchangers based on polymers. 

Self adhesive plates, sheets, film foil, tape, strip of plastic whether or not in rolls. 

Flexible plain films. 

Articles  for  the  packing  of  goods  of  plastics;  namely;  boxes,  cases  crates,  containers, 
carboys, bottles, jerry cans and their stoppers, lids caps of plastics but not including insulated 
ware. 

Natural rubber, balata, gutta percha, Guayule, chicle and similar natural gums, in primary 
forms or in plates, sheets or strips. 

Synthetic rubber and factice derived from oils in primary forms or in plates, sheets or strip; 
mixtures of any produce of this heading in primary forms or in plates, sheets or strip. 

Reclaimed rubber in primary form or in plates, sheets or strip. 

Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip other than 
the forms and articles of unvulcanised rubber. 

Mechanical wood pulp, chemical wood pulp, semi-chemical wood pulp and pulps of other 
fibrous cellulosic materials. 

Cartons (including flattened or folded cartons), boxes (including flattened or folded boxes), 
cases,  bags  and  other  packing  containers,  of  paper,  paperboard,  whether in  assembled  or 
unassembled condition. 

Paper printed labels and paperboard printed labels. 

Paper self adhesive tape and printed wrappers used for packing. 

Sacks and bags of a kind used for the packing of goods, of jute or of other textile based 
fibres. 

Carboys, bottles, jars phials of glass, of a kind used for the packing of goods; stoppers, lids 
and other closures of glass. 

Stoppers, caps and lids (including crown corks, screw caps and pouring stoppers) capsules 
for bottles, threaded bungs, bung covers, seals and other packing accessories of base metal. 

66 

 
 
 
SCHEDULE IV 

(See section 14) 

Serial 
Number 

Goods 

1 

2 

3 

4 

5 

6 

Country liquor including spiced country liquor 

Potable spirit, wine or liquor whether imported or manufactured in India 

High Speed Diesel Oil and Light Diesel Oil 

Motor Spirit 

Natural Gas 

Aviation Turbine Fuel 

67 

 
 
 
 
SCHEDULE V 

(See section 17) 

Serial 
Number 

List of organisations which can claim refund 

1. 

AFGHANISTAN. 

H.E. Ambassador of Republic of Afghanistan. 

The Embassy of Republic of Afghanistan. 

2. 

3. 

The Diplomatic Officers (including their spouses) of the Embassy of Afghanistan. 

AFRO-ASIAN RURAL RECONSTRUCTION ORGANISATION. 

ALGERIA. 

The Embassy of Democratic and Popular Republic of Algeria. 

4. 

ANGOLA. 

The Embassy of Angola on the purchases made by the diplomats for Official and personal 
use. 

5. 

6. 

APOSTOLIC NUNCIATURE. 

ARGENTINA. 

The Embassy of Argentina Republic on the purchases made by its diplomats for official as 
well as personal use. 

7. 

ARMENIA. 

The Embassy of Armenia on the purchases made by the mission for official use. 

8. 

ASIAN AFRICAN LEGAL CONSULTIVE COMMITTEE, 

for its official use. 

ASIAN DEVELOPMENT BANK. 

AUSTRALIA. 

9. 

10. 

The  High  Commission  and  its  Diplomatic  Officers  in  respect  of  purchases  made  from 
bounded stores only for their official and personal use. 

11. 

AUSTRIA. 

The Embassy of Austria in India (for sales intended for their official use). 

The  Diplomatic  Officers  of  the  Embassy  of  Austria  in  India  (for  sales  intended  for  their 
personal use). 

12. 

BANGLADESH. 

The High Commission for the Peoples Republic of Bangladesh in India. 

The Diplomatic Officers (including their spouses) of the High Commission for the Peoples 
Republic of Bangladesh in India. 

13. 

BELARUS. 

The  Embassy  of  Belarus 
administrative/technical personnel for official as well as personal use. 

India.  Purchases  made 

for 

in 

its  diplomatic  and 

68 

 
 
 
 
Serial 

List of organisations which can claim refund 

Number 

14. 

BELGIUM. 

H.E. the Ambassador of Belgium in India.  

The Embassy of Belgium in India. 

The Diplomatic Officers of the Belgium Embassy in India. 

15. 

BHUTAN. 

The Royal Bhutan Mission for sales intended for official use of Mission. 

The Representative of Bhutan for sales intended for personal use. 

The Diplomatic Officers of the Royal Bhutan Mission for sales intended for personal use. 

16. 

BRAZIL. 

The Embassy of the Federative Republic of Brazil in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Federative Republic of 
Brazil in India. 

17. 

BRITAIN. 

The High Commission for Britain in India (all sales for official use). 

The Diplomatic Officers (including their spouses) of the High Commission for Britain in 
India (sales of imported goods from bonded stocks only). 

18. 

BRUNEI DARUSSALAM. 

The Embassy of Brunei Darussalam on the purchases made by its Diplomats for Official as 
well as personal use. 

19. 

BULGARIA. 

H.E. the Ambassador of the Peoples Republic of Bulgaria in India. 

The Embassy of the Peoples Republic of Bulgaria in India. 

The Diplomatic Officers (including their spouses) of the Embassy of the Peoples Republic 
of Bulgaria in India. 

20. 

CANADA. 

H.E. the High Commissioner for Canadian in India. 

The Diplomatic Officers of the Canada High Commission. 

The Canadian High Commission. 

21. 

CENTRAL AFRICA. 

The Embassy of the Central African Empire (for sales intended for official use). 

The Diplomatic Officers (including their spouses) of the Embassy of the Central African 
Empire (for sales intended for their personal use). 

22. 

CHINA. 

H.E. the Chinese Ambassador in India. 

The Embassy of the Peoples Republic of China. 

The Diplomatic officers of the Chinese Embassy in India. 

69 

 
 
 
Serial 

List of organisations which can claim refund 

Number 

23. 

COLUMBIA. 

The Embassy of Columbia in India. 

24. 

COMBODIA. 

H.E. the ambassador of Combodia in India. 

The Embassy of Combodia in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Combodia in India. 

25. 

(A)  Officials  of  the  COMMISSION  OF  THE  EUROPEAN  COMMUNITIES  for 
setting up their office. 

(B) Personnel of the delegation holding diplomatic status (other than Indian nationals and 
persons permanently resident in India Employed by the said Commission). 

26. 

COMMON EDUCATIONAL MEDIA CENTRE FOR ASIA. 

Common  Educational  Media  Centre  on  the  purchase  made  for  official  use  and  by  its 
President and Vice-President for personal use. 

27. 

CONGO. 

The Congolese Embassy and their Diplomatic Officers. 

28. 

CROATIA. 

The Embassy of Croatia on the purchases made by its diplomats for official as well as for 
personal use of their officials. 

29. 

CUBA. 

The Embassy of the Republic of Cuba in India. 

The Diplomatic Officers (including their spouses) of the Republic of Cuba in India. 

30. 

CYPRUS. 

The Cyprus High Commission (for sales intended for official use). 

The Diplomatic Officers (including their spouses) of the Cyprus High Commission (for sales 
intended for their personal use). 

31. 

CZECH REPUBLIC. 

The  Embassy  of  Czech  Republic  on  the  purchases  made  by  its  diplomats  for 
official as well as for personal use of their officials. 

32. 

DENMARK. 

The Royal Danish Embassy in India. 

The Diplomatic Officers (including their spouses) of the Royal Danish Embassy in India. 

33. 

DOMINICA. 

The High Commission for the Commonwealth of Dominica (for its official purchases). 

The Diplomatic Officials of the High Commission for the Commonwealth of Dominica (for 
their personal use). 

70 

 
 
 
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List of organisations which can claim refund 

Number 

34. 

EGYPT. 

The Embassy of the Arab Republic of Egypt in India. 

The Diplomatic officers (including their spouses) of the Embassy of the Arab Republic of 
Egypt in India. 

35. 

ETHOPIA. 

The Ethopian Embassy in India (for its official purchases). 

The Diplomatic Officers of the Ethopian Embassy in India (for their personal purchases). 

36. 

FINLAND. 

The  Embassy  of  Finland  on  the  purchase  of  following  items  made  by  its  diplomats  for 
official purpose. 

(1) Construction materials as well as commodities to be used for the interior decoration and 

furnishing of building. 

(2) Commodities used in representational functions. 

(3) Motor vehicles as well as spare parts and equipment for Motor vehicles. 

(4) Work performances concerning the premises of a mission or office and the commodities 

referred to in items (1) to (3) or the rental of those commodities. 

(5) Telecommunication services, energy commodities and fuel purchased for the building of 

a mission or office. 

(6) Fuels for motor vehicles. 

37. 

FRANCE. 

The Embassy of France on the purchases made by its diplomats for Official purposes and 
for the residence of the Ambassador. 

38. 

GERMANY. 

The Embassy of Germany in India (for sales intended for official use only). 

The Diplomatic Officers of the German Embassy in India (for sales intended for personal 
use). 

39. 

GHANA. 

The High Commissioner for Ghana in India. 

The Diplomatic officers (including their spouses) of the High Commissioner for Ghana in 
India. 

40. 

GREECE. 

The Royal Greek Embassy in India. 

The Diplomatic Officers (including their spouses) of the Royal Greek Embassy in India. 

41. 

GUYANA. 

The High Commission for Guyana, and its Diplomatic Officers (including their spouses). 

71 

 
 
 
Serial 

List of organisations which can claim refund 

Number 

42. 

HUNGARY. 

H.E. The Ambassador of the Hungarian Peoples Republic in India. 

The Embassy of the Hungarian Peoples Republic in India. 

The Diplomatic Officers (including their spouses) of the Embassy of the Hungarian Peoples 
Republic in India. 

43. 

INDONESIA. 

44. 

45. 

46. 

47. 

48. 

The Embassy of Indonesia on all its official purchases and the purchases made by its officials 
for their personal use. 

INTERNATIONAL  BANK  FOR  RECONSTRUCTION  AND  DEVELOPMENT  IN 
INDIA  and  Employees,  other  than  those  recruited  locally  of  the  International  Bank  for 
Reconstruction and Development in India. 

INTERNATIONAL 
BIOTECHNOLOGY, (for all its official purchases). 

CENTRE 

FOR 

GENETIC 

ENGINEERING 

AND 

(A) Office of the INTERNATIONAL COURT OF JUSTICE (for sales intended for official 
use). 

(B)  Dr.  Nagendra  Singh  an  elected judge  of the  International  Court  of Justice, (for  sales 
intended for his personal use). 

INTERNATIONAL LABOUR OFFICE. 

IRAN. 

The Embassy of Iran in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Iran in India. 

49. 

IRAQ. 

H.E. the Ambassador of the Republic of Iraq in India. 

The Embassy of Republic of Iraq in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Iraq in India. 

50. 

IRELAND. 

The Embassy of Ireland in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Ireland in India. 

51. 

ISRAEL. 

The Embassy of Israel on purchases made by its diplomats for official as well as for personal 
use. 

52. 

ITALY. 

The Embassy of Italy on the purchases made by its diplomats for official use as well as for 
personal use of their officials. 

53. 

JAPAN. 

The Embassy of Japan and its Diplomatic Officers. 

72 

 
 
 
Serial 

List of organisations which can claim refund 

Number 

54. 

JORDAN. 

The Embassy of Hashemite Kingdom of Jordan in India. 

The  Diplomatic  Officers  (including  their  spouses)  of  the  Embassy  of  the  Hashemite 
Kingdom of Jordan in India. 

55. 

KAZAKHSTAN. 

The Embassy of Kazakhstan on the purchases made by its diplomats for official as well as 
for personal use. 

56. 

KENYA. 

For official use as well as Diplomatic Officers (including their spouses) of the Kenya High 
Commission in India. 

57. 

KOREA. 

H.E. the Ambassador of Korea. 

The Embassy of the Republic of Korea. 

The Diplomatic Officers (including their spouses) of the Embassy Republic of Korea. 

58. 

KOREA (D.P.R.). 

H.E. The Ambassador of the Democratic Peoples Republic of Korea. 

The Embassy of the Democratic People Republic of Korea. 

The Diplomatic Officers (including their spouses) of the Embassy of the Democratic Peoples 
Republic of Korea. 

59. 

KUWAIT. 

H.E. the Ambassador of the State of Kuwait in India. 

The Embassy of the State of Kuwait in India. 

The Diplomatic Officers of the Embassy of the State of Kuwait in India. 

60. 

KYRGHYSTAN. 

The Embassy of Kyrghystan on the purchases made by its diplomats for official as well as 
for personal use. 

61. 

LAOS. 

The Royal Embassy of Laos in India. 

The Diplomatic Officers (including their spouses) of Royal Embassy of Laos in India. 

62. 

LEAGUE OF ARAB STATES MISSION. 

League of Arab States Mission. 

Chief Representative, Deputy Chief Representative, their spouses and minor children of the 
league of Arab States Mission. 

63. 

LEBANON. 

H.E. the Ambassador of Lebanon in India. 

The Embassy of Lebanon in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Lebanon. 

73 

 
 
 
Serial 

List of organisations which can claim refund 

Number 

64. 

LIBERIA. 

The Embassy of Liberia on all its official purchases as well as purchases made by its officials 
for their personal use. 

65. 

LIBYA. 

The Embassy of the Libyan Arab Republic in India (for sales intended for official use). 

The  Diplomatic  Officers  (including  their  spouses)  of  the  Embassy  of  the  Libyan  Arab 
Republic in India (for sales intended for their personal use). 

66. 

LUXEMBOURG. 

The Embassy of Grand Duchy of Luxembourg in respect of goods purchased by them for 
official use only. 

67. 

MALAYSIA. 

The High Commissioner for Malaysia in India. 

The Diplomatic Officer (including their spouses) of the High Commissioner for Malaysia in 
India. 

68. 

MAURITIUS. 

The High Commission of Mauritius and its Diplomatic Officers. 

69. 

MEXICO. 

The Embassy of Mexico in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Mexico in India. 

70. 

MONGOLIA. 

H.E. the Ambassador of the Mongolian Peoples Republic in India. 

The Embassy of the Mongolian Peoples Republic in India. 

The Diplomatic Officers of the Embassy of the Mongolian Peoples Republic in India. 

71. 

MOROCCO 

The  Embassy  of Morocco on  the  purchases  made  by its  diplomats  for  official  as  well as 
personal use. 

72. 

MOZAMBIQUE. 

High Commission of the Republic of Mozambique in respect of goods purchased by them 
for official use only. 

73. 

MYANMAR. 

The Embassy of the Republic of the Myanmar in India. (Restricted to sale of goods from 
bonded stocks). 

The Diplomatic Officers (including their spouses) of the Embassy of the Union of Myanmar 
in India. (sale of petrol only). 

74. 

NAMIBIA. 

The Namibian High Commission on the purchase made by its diplomats for official as well 
as for personal use. 

74 

 
 
 
Serial 

List of organisations which can claim refund 

Number 

75. 

NEPAL. 

The Royal Nepalese Embassy in India, and  

The Diplomatic Officers (including their spouses) of the Royal Nepalese Embassy in India. 

76. 

NETHERLANDS. 

The Royal Netherlands Embassy in India. 

The  Diplomatic  Officers  (including  their  spouses)  of  the  Royal  Netherlands  Embassy  in 
India. 

77. 

NICARAGUA. 

The Embassy of Nicaragua on all its official purchases as well as the purchases made by its 
officials for their personal use. 

78. 

NIGERIA. 

H.E. the High Commission of the Federal Republic of Nigeria in India. 

The High Commission for the Federal Republic of Nigeria. 

The Diplomatic Officers of the High Commission for the Federal Republic of Nigeria in 
India. 

79. 

NORWAY. 

H.E. the Norwegian Ambassador in India. 

The Royal Norwegian Embassy in India. 

The Diplomatic Officers (including their spouses) of the Royal Norwegian Embassy in India. 

80. 

OMAN. 

The Embassy of Sultanate of Oman and its Diplomatic Officers. 

81. 

PAKISTAN. 

The Embassy of Pakistan in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Pakistan in India. 

82. 

PANAMA. 

The  Embassy  of  Panama  and  its  Diplomatic  Officers  in  respect  of  purchases  made  from 
bonded stores only. 

83. 

PHILIPPINES. 

H.E. the Ambassador of the Philippines in India. 

The Embassy of Philippines in India, and  

The Diplomatic Officers (including their spouses) of the Embassy of the Philippines in India. 

84. 

PLO. 

The Embassy of the Palestine Liberation Organisation (for sales intended for official use). 

The Diplomatic Officers (including their spouses) of the Embassy of the Palestine Liberation 
Organisation (for sales intended for personal use). 

85. 

POLAND. 

The Embassy of the Polish Peoples Republic and their Diplomatic Officers. 

75 

 
 
 
Serial 

List of organisations which can claim refund 

Number 

86. 

PORTUGAL. 

The Embassy of Portugal in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Portugal in India (for 
sales intended for their personal use). 

87. 

QATAR. 

The Embassy of the State of Qatar. 

The Diplomatic Officers of the Embassy of the State of Qatar, and their spouses for sales 
intended for their personal use. 

88. 

ROMANIA. 

H.E. the Ambassador of the Socialist Republic of Romania in India. 

The Embassy of the Socialist Republic of Romania in India. 

The Diplomatic Officers (including their spouses) of the Embassy of the Socialist Republic 
of Romania. 

89. 

RUSSIA. 

The Embassy of the Russian Federation on the purchases made by the Diplomats for official 
and personal use. 

90. 

RWANDA. 

The  Embassy  of  Republic  of  Rwanda  on  the  purchases  made  by  its  diplomatic  and 
administrative/technical personnel for official as well as personal use. 

91. 

SAHRAWI ARAB DEMOCRATIC REPUBLIC. 

The Embassy of Sahrawi Arab Democratic Republic. 

The Diplomatic Officers of the Embassy of Sahrawi Arab Democratic Republic. 

92. 

SAUDI ARABIA. 

H.E. the Ambassador of Saudi Arabia in India. 

The Embassy of Saudi Arabia in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Saudi Arabia in India. 

93. 

SENEGAL. 

The Embassy of Republic of the Senegal in India (for sales intended for the official use of 
the Embassy). 

The Diplomatic Officers (including their spouses) the Embassy of the Republic of Senegal 
in India (for sales intended for personal use). 

94. 

SINGAPORE. 

The High Commission for Singapore. 

Their Diplomatic Officers. 

95. 

SLOVAK REPUBLIC. 

The Embassy of Slovak Republic on the purchases made by its diplomats for official as well 
as for personal use of their officials. 

76 

 
 
 
Serial 

List of organisations which can claim refund 

Number 

96. 

SOMALIA. 

The Embassy of Somalia in India (for sales intended for official use). 

The Diplomatic Officers (including their spouses) of the Embassy of the Somali in India (for 
sales intended for their personal use). 

97. 

SOUTH AFRICA. 

The Embassy of South Africa on the purchases made by its diplomats for official as well as 
for personal use. 

98. 

SOUTH WEST AFRICAN PEOPLES ORGANISATION (SWAPO). 

The Embassy of South West African Peoples Organisation (SWAPO) – on all its official 
purchases and the purchases made by its officials for their personal use. 

99. 

SPAIN. 

H.E. the Ambassador of Spain in India. 

The Embassy of Spain in India. 

The Diplomatic Officers of the Embassy of Spain in India. 

100. 

SRI LANKA. 

The  High  Commission  for  the  Democratic  Socialist Republic of  Sri  Lanka for purchases 
made for its official use as well as by diplomats. 

101. 

SUDAN. 

The Embassy of Democratic Republic of Sudan in India. 

The  Diplomatic  Officers  (including  their  spouses)  of  the  Embassy  of  the  Democratic 
Republic of Sudan in India. 

(Exemption extended to purchases from places other than bonded stocks). 

102.  

SURINAME. 

The Embassy  of Republic of Suriname on the purchases made for official use as well as 
personal use of the diplomats. 

103. 

SWEDEN. 

The Royal Swedish Embassy in India (for its official purchases). 

The Diplomatic Officers of the Royal Swedish Embassy in India (for their personal use). 

104. 

SWITZERLAND. 

The Embassy of Switzerland on the purchases made by its diplomats for official as well as 
for personal use of their officials. 

105. 

SYRIA. 

The Embassy of the Syrian Arab Republic and their Diplomatic Officers. 

106. 

THAILAND. 

The Royal Thai Embassy in India. 

The Diplomatic Officers (including their spouses) of the Royal Thai Embassy in India. 

77 

 
 
 
Serial 

List of organisations which can claim refund 

Number 

107. 

TRINIDAD. 

The High Commission for Trinidad and Tobago in India. 

The members of the Diplomatic Staff of the said High Commission. 

(Exemption restricted to (i) sale intended for the official use of the Commission and (ii) sale 
intended for personal use). 

108. 

TUNISIA. 

The  Embassy  of  Tunisia  on  the  purchases  made  by  its  Diplomats  for  official  as  well  as 
personal use. 

109. 

TURKEY. 

The Embassy of Turkey on the purchases made by its diplomats for official as well as for 
personal use. 

110. 

U.A.E. 

The Embassy of the United Arab Emirates, for its official use. 

The Diplomatic Officers of the Embassy of the United Arab Emirates, and their spouses for 
sales intended for their personal use. 

111. 

UGANDA. 

The High Commission for the Republic of Uganda in India. 

The Diplomatic officers (including their spouses) of the High Commission for the Republic 
of Uganda in India. 

112. 

UKRAINE. 

113. 

114. 

115. 

116. 

117. 

118. 

119. 

120. 

121. 

122. 

The Embassy of Ukraine on the purchases made by its diplomats for official as well as for 
personal use. 

UNITED NATIONS DEVELOPMENT PROGRAMME. 

The  Regional  Office  for  India,  Nepal,  Ceylon,  Iran,  Afghanistan  and  Pakistan  of  THE 
UNITED NATIONS ECONOMIC COMMISSION FOR ASIA and Far East (Division of 
Social Affairs). 

UNITED NATIONS EDUCATION SCIENTIFIC AND CULTURAL ORGANISATION. 

CULTURAL 
UNITED  NATIONS 
ORGANISATION  RESEARCH  CENTRE  ON  SOCIAL  AND  ECONOMIC 
DEVELOPMENT IN SOUTHERN ASIA. 

SCIENTIFIC  AND 

EDUCATIONAL 

UNITED NATIONS FOOD AND AGRICULTURAL ORGANISATION. 

UNITED NATIONS HIGH COMMISSION FOR REFUGEES. 

(Exemption for official use only). 

UNITED NATIONS INFORMATION CENTRE. 

UNITED NATIONS INTERNATIONAL CHILDREN'S EMERGENCY FUND. 

UNITED NATIONS MILITARY OBSERVERS GROUP IN INDIA AND PAKISTAN. 

UNITED NATIONS OFFICE FOR POPULATION STUDIES. 

78 

 
 
 
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List of organisations which can claim refund 

Number 

123. 

(A) The Regional Office of the UNITED NATIONS WORLD HEALTH ORGANISATION 
for South East Asia, (for sales intended for official use). 

(B)  The  Regional  Director  (including  his  spouses)  of  the  United  Nations  World  Health 
Organisation for South East Asia, (for sales intended for personal use). 

124. 

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT MISSION. 

United States Agency for International Development Mission and Employees other than the 
locally recruited staff of the United States Agency for International Development Mission. 

125. 

URUGUAY. 

H.E. the Ambassador of the Oriental Republic of Uruguay in India. 

The Embassy of the Oriental Republic of Uruguay in India. 

The Diplomatic Officers (including their spouses) of the Oriental Republic of Uruguay in 
India. 

126. 

U.S.A. 

The Embassy of the U.S.A. in India. 

H.E. the Ambassador of the U.S.A. in India. 

The Diplomatic Officers (including their spouses and dependents) of the Embassy of U.S.A. 
in India. 

127. 

RUSSIAN FEDERATION. 

H.E. the Ambassador of the Russian Federation in India. 

The Embassy of the Russian Federation in India. 

The Diplomatic Officers of the Embassy of Russian Federation in India. 

128. 

UZBEKISTAN. 

The Embassy of Republic of Uzbekistan on the purchases made by its diplomats for official 
as well as for personal use. 

129. 

VIETNAM (DEMOCRATIC REPUBLIC). 

H.E. the Ambassador of the Democratic Republic of Vietnam in India. 

The Embassy of the Democratic Republic of Vietnam in India. 

The  Diplomatic  Officers  (including  their  spouses)  of  the  Embassy  of  the  Democratic 
Republic of Vietnam in India. 

130. 

VIETNAM (REPUBLIC). 

The Counsel General of the Republic of Vietnam in India. 

The Consulate General of the Republic of Vietnam in India. 

The Consular Officer of the Consulate General of the Republic of Vietnam in India. 

131. 

VENEZUELA. 

The Embassy of Venezuela in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Venezuela in India. 

79 

 
 
 
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List of organisations which can claim refund 

Number 

132. 

YEMEN. 

The Embassy of the Peoples Democratic Republic of Yemen in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Peoples Democratic 
Republic of Yemen in India. 

133. 

YUGOSLAVIA. 

The Embassy of the Socialist Federal Republic of Yugoslavia in India. 

The Diplomatic Officers (including their spouses) of the Embassy of Federal Republic of 
Yugoslavia in India. 

134. 

ZAIRE. 

H.E. the Ambassador of the Republic of Zaire in India. 

The Embassy of the Republic of Zaire in India. 

The Diplomatic Officers (including their spouses) of the Embassy of the Republic of Zaire 
in India (exemption restricted to goods from bonded stores only). 

135. 

ZAMBIA. 

The High Commission of Zambia in India (for sales intended for official use). 

The Diplomatic Officers (including their spouses) of the Zambian High Commission in India 
(for  sales  intended  for  personal  use),  (exemption  is  restricted  to  goods  manufactured  or 
produced in India and not imported from out of India). 

136. 

ZIMBABWE. 

The Zimbabwe High Commission for its official purchases only upon certification of the 
Head of Mission Charged Affairs. 

–––––––– 

80 

 
